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Time for new gypsum wallboard plants in the US

26 October 2023

Georgia-Pacific officially opened its new gypsum wallboard plant at Sweetwater in Texas earlier this month. The US$325m project is situated next to the company’s existing plant at the site, Sweetwater West, on the other side of a road. Canada-based Gyptech said in 2021 that it was supplying the equipment for the new high-speed line at the site.

When Georgia-Pacific first announced the new project in 2020, it mentioned that it would be able to keep its logistics costs low, use raw gypsum reserves and the existing workforce. Despite this, the plant has still created over 100 new jobs. The company also said that it anticipated closing its 60Mm2/yr Quanah plant, also in Texas, depending upon market conditions. This came to pass in March 2023. Altogether, both plants at Sweetwater will have a production capacity of around 93Mm2/yr. This implies that the new plant has a production capacity of around 60Mm2/yr, given that the existing plant’s capacity is 30Mm2/yr. Funnily enough this is the same as the Quanah plant.

The new plant at Sweetwater may be a sign that the US wallboard market is picking up again. Georgia-Pacific has invested some serious money and it is targeting Texas, a leading area for construction nationally. However, it does come with a few caveats. Firstly, the new plant at Sweetwater is replacing existing capacity at Quanah. Secondly, it is using some of the advantages of the existing plant such as its trucks and its proximity to its customers. This suggests that the company may be wary of building a new plant in a greenfield location with all the potential risks that might involve.

US wallboard sales have regularly peaked and troughed over the decades, like many other commodity markets, as demand and production capacity race each other. Sales of wallboard peaked around the year 2000 and then again in the mid 2000s before tailing off following the 2007 recession. They have been recovering ever since and started to get close to the levels seen in the first half of the 2000s in 2022 when the United States Geological Survey (USGS) reported wallboard sales of 2.6Bnm2.

Generally, the last tranche of new wallboard plants in the US were built or approved in the late 2000s before the financial downturn. These new sites included CertainTeed’s Roxboro plant in North Carolina and the Moundsville plant in West Virginia, Gold Bond Building Products’ Mount Holly plant in North Carolina and American Gypsum’s Georgetown plant in South Carolina. From this point though various plants were either closed or mothballed. Some of the latter have been restarted as the market slowly recovered. New plant projects in the 2010s tended to be upgrades or replacements. One example of this was USG’s plan to rebuild a production line at its Jacksonville plant in Florida, which was announced in late 2017 before Knauf took over the company in 2018. Another was National Gypsum’s scheme to reopen its Wilmington plant in North Carolina in 2019. At the same time in the 2010s there were a number of mergers and acquisitions including Lafarge’s sale of its gypsum business in North America in 2013, Knauf’s takeover of USG in 2019 and Saint-Gobain’s acquisition of Continental Building Products in 2020.

When Georgia-Pacific started building the new plant at Sweetwater in 2020 this marked the start of a new phase of US wallboard plant projects. American Gypsum announced plans for an upgrade to its Albuquerque gypsum wallboard plant in 2021, Gold Bond Building Products started building its long-delayed Eloy plant in Arizona in 2022 and it said it was spending US$90m on an upgrade to its Mount Holly gypsum wallboard plant in North Carolina in 2023, and CertainTeed revealed it wanted to build a second production line at its Palatka gypsum wallboard plant in Florida also in 2023.

Congratulations are due to Georgia-Pacific for the achievement at Sweetwater. Optimism for the US market in general may also be in order given the slow but steady stream of projects that have been announced and completed since 2020. The next step, when a company builds a new wallboard plant at a greenfield site in the US, looks set to happen when Gold Bond Building Products completes its Eloy plant.

Published in Analysis
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Oman exports 8.75Mt of gypsum in first nine months of 2023

11 October 2023

Oman: Oman exported 8.75Mt of gypsum in the first nine months of 2023, a rise of 23% year-on-year from 7.09Mt in the same period in 2022. Data from Oman-based Zawawi Minerals shows that 48% of exports were sent to India.

Published in Global Gypsum News
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US gypsum board product sales fall in the first half of 2023

30 August 2023

US: Data from the United States Geological Survey (USGS) show that the sale of gypsum board products fell by 5% to 1.25Bnm2 in the first half of 2023, from 1.31Bnm2 in the same period in 2022. The total supply of crude gypsum grew by 9% to 20.4Mt. Notably, supplies of imported and synthetic gypsum increased in the reporting period. However, the USGS noted that on a quarterly basis “...variances are often the result of differences in weather conditions, which can impede or encourage construction activities, coupled with market demands that are often driven by residential and commercial building activity. Use of uncalcined gypsum remained stable, but consumption of calcined gypsum fell by 33% to 7.86Mt, due to reduced utilisation in board products. Spain, Canada and Mexico remained the main sources of import of crude gypsum. However, imports from Türkiye more than doubled to 195,000t.

Published in Global Gypsum News
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Azerbaijan's gypsum production rises in the first half of 2023

14 July 2023

Azerbaijan: Total national gypsum production was 36,500t during the first half of 2023, according to the State Statistics Committee. This corresponds to a 96% year-on-year rise from first-half 2022 levels.

Published in Global Gypsum News
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US gypsum wallboard production drops in first quarter of 2023

02 June 2023

US: The US gypsum wallboard industry produced 623Mm2 of gypsum wallboard during the first quarter of 2023, down by 1% year-on-year and by 1.2% quarter-on-quarter. The industry exported 20.1Mm2 of gypsum wallboard in the quarter under review, corresponding to 19% year-on-year growth. Canada received 19Mm2 of the product, 94% of total exports for the quarter.

United States Geological Survey (USGS) data show 4% year-on-year growth in US gypsum wallboard imports. The country imported 23Mm2 during the year, 20.9Mm2 (91%) of it from Mexico and 1.84Mm2 (8%) from Canada. Total calcined gypsum consumption was 4.66Mt in the US in the first quarter of 2023, up by 9.9% year-on-year from 4.24Mt in the first quarter of 2022.

Published in Global Gypsum News
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Sales of US gypsum board products rise by 2% to 1.99Mm2 so far in 2022

12 December 2022

US: Total sales of gypsum boards products grew by 2% year-on-year to 1.99Bnm2 in the first nine months of 2022, from 1.94Bnm2 in the same period in 2021. Sales grew particularly fast in the South Atlantic and East South Central regions, but they fell in the Pacific region. Data from the United States Geological Survey (USGS) shows that the total of uncalcined gypsum used in the reporting period rose by 5% to 15.7Mt and the total of calcined gypsum used increased by 2% to 17.9Mt. The supply of mined crude gypsum fell by 6% to 15.9Mt, imports rose by 1% to 5.11Mt and the supply of synthetic gypsum remained stable at 9.75Mt. Spain became the biggest source of crude gypsum imports so far in 2022 followed by Canada, Mexico and Türkiye.

Published in Global Gypsum News
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Knauf issues update on cyber attack

26 July 2022

Germany: Knauf Group says it has made “good time in restorations” following a cyber attack in late June 2022. It said it was continuing to work on reinstating operating procedures and was on its way to achieving this. It added that many of its online systems and email were back to normal functionality and that other processes were still being restored. In separate coverage, Bleeping Computer reports that the Black Basta ransomware gang has claimed responsibility for the attack.

Published in Global Gypsum News
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Knauf reports cyber attack

08 July 2022

Germany: A cyber attack compromised Knauf's computer systems on 29 June 2022, leading the producer to opt for a complete services shutdown. The group said that its information technology (IT) unit successfully isolated the breach and has launched an investigation.

Knauf thanked customers for their understanding and trust. It said "We are currently working heavily to mitigate the impact to our customers and partners – as well as to plan a safe recovery. However, we apologise for any inconvenience or delays in our delivery processes that may occur."

Published in Global Gypsum News
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Japanese gypsum wallboard shipments fall slightly in 2021

13 June 2022

Japan: Data from the Gypsum Board Industry Association shows that domestic shipments of gypsum wallboard fell by 0.9% year-on-year to 455Mm2 in 2021. This is the second consecutive annual decline, according to Nikkei. Local wallboard production is reportedly linked to new housing starts in the country. Recovery in non-residential markets, such as office interiors, has been slow.

Published in Global Gypsum News
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US wallboard product sales grow by 4% to 2.54Bnm2 in 2021

18 March 2022

US: The United States Geological Survey (USGS) reports that total gypsum board product sales grew by 4% year-on-year to 2.54Bnm2 in 2021 from 2.43Bnm2 in 2020. 22.4Mt of gypsum was mined in 2021, a 1% rise from 21. Synthetic gypsum supply decreased by 10% to 13Mt from 14.4Mt. Imports declined by 11% to 25,700t from 29,000t but exports grew by 11% to 98,800t from 89,300t.

Published in Global Gypsum News
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