Gypsum industry news

Ukraine: Germany-based Knauf has purchased 0.33 hectares of land in Kyiv’s Solomianskyi District for the 'operation and maintenance' of its transport shop. Business World News has reported that the company agreed to pay US$327,000 for the land.

India: Saint-Gobain India plans to grow its gypsum business as part of a new investment phase, targeting revenues of US$4.3bn across its businesses by 2032. The Hindu newspaper has reported that this represents growth by a factor of three from 2023 levels. The investment phase will include total capex of US$719 – 959m from 2021 to 2025, with ‘significant’ allocations to gypsum activities. The company had invested US$1.58bn up to the end of 2023, including acquisitions in the gypsum wallboard segment.

Asia-Pacific and India regional CEO B Santhanam said "We have made huge investments in India, and quite a lot of them were in new plants."

US: Southern Wall Products plans to invest US$23m in the construction of a new gypsum wallboard finishing products plant in Anderson, South Carolina. When commissioned in June 2025, the plant will employ 28 people.

President Chris Winkler said "Southern Wall Products has been constructing communities since 1981. We are thrilled about this next chapter for our company, our employees and their families.”

Belgium: Etex reported sales of €3.81bn in 2023, up by 2.5% from 2022 levels. The company's recurring earnings before interest, taxation, depreciation and amortisation (REBITDA) rose by 10% to €712m. It also raised its capital expenditure for the year, to €371m. Etex says that it was Europe’s leading gypsum recycling performer, with a recycling rate of 8.6% of all gypsum used. The group is ‘actively preparing’ to help rebuild Ukraine as soon as conditions permit.

CEO Bernard Delvaux said “Even more so than 2022, 2023 was a challenging year marked by volatility, uncertainty and severe drops in demand across the world, as we observed the continued impacts of increased energy prices and interest rates. Combined with tougher financing possibilities by banks, all these circumstances meant that both renovation and new construction levels dropped globally. Devaluation of some foreign currencies and hyperinflation accounting also had significant effects on our results. Despite all these challenges, I am extremely proud to share that Etex navigated these difficult waters very well and delivered yet again another record year. This includes our highest ever revenue and REBITDA, among others. This strong performance stems from our anticipation in making strategic decisions and changes at global, regional and local levels, ensuring continued proximity with our customers. This is also a result of even tighter cost monitoring in 2023, without ever losing sight of our long-term ambitions and continuing to improve our strong industrial footprint.”

US: Georgia-Pacific made total investments worth US$2bn throughout 2023. Major capital expenditure (CAPEX) investments include its US$325m construction of its second Sweetwater gypsum wallboard plant in Texas.

Georgia-Pacific Gypsum president David Neal said "Georgia-Pacific is keenly focused on the future and committed to innovation and meeting the needs of our customers. The two [Sweetwater gypsum wallboard plant] operations combined will supply customers and distribution partners with more than 93Mm²/yr of gypsum wallboard each year and create more than 100 new jobs. This investment strengthens Georgia-Pacific's capacity to meet growing customer needs in Texas' residential, commercial and industrial construction markets."

India: Saint-Gobain plans to invest over US$400m in its different businesses, including gypsum wallboard, in Tamil Nadu. Company chair Pierre-Andre de Chalendar and chief executive officer Benoit Bazin met the Chief Minister MK Stalin, senior ministers and officials of the government of Tamil Nadu as part of the announcement. The new funding brings the company’s total investment in the state to over US$950m.

New Zealand: Fletcher Building has managed to grow its earnings for its Building Products division in its 2023 financial year despite a weakened residential market in the second half of the year, poor weather and rising input costs. It noted that “substantial cost increases were absorbed on gypsum, paper, resin and freight, partially offset by lower utility costs from the drop in electricity prices.” It combated this through cost management and ‘pricing discipline.’ Revenue from the group’s Building Products division fell slightly to US$863m in the financial year to 30 June 2023 from US$873m in the same period in 2022. However, earnings before interest and taxation (EBIT) rose by 4% year-on-year to US$120m from US$115m.

Ross Taylor, the chief executive officer of Fletcher Building, said “Our US$240m investment in Winstone Wallboards GIB plasterboard manufacturing and distribution facility in Tauranga has now commenced production and will be fully operational by the end of October 2023. The new plant’s state-of-the-art technology delivers more production capacity allowing for product innovation and future growth.”

Overall the group’s revenue dropped slightly to US$5.07bn from US$5.08bn and EBIT dropped by 29% to US$298m from US$420m. The large drop in earnings was mainly attributed to additional costs allocated to the New Zealand International Convention Centre and Hobson Street Hotel project. Adjusted for significant items the group’s EBIT rose by 6% to US$477m from US$452m.

UK: Adaptavate has raised around Euro2.3m in its latest investment round. This investment round has been led by Counteract, with Low Carbon Innovation Fund 2 (LCIF2), Semin and Perivoli Innovations. It follows Adaptavate’s previous seed funding round, announced in March 2022, and subsequent support received to industrialise the development of carbon negative construction materials including developing industrial processes to make low-carbon and carbon absorbing plaster and wallboard.

The company is currently building a development centre, including laboratories and a pilot production, line in Bristol and conducting research to complete testing and licencing programmes for its Breathaboard product. Breathaboard is a gypsum-free wallboard manufactured from compostable crop waste. Adaptavate intends to start use Breathaboard produced on the new line in pilot construction projects by the end of 2023. The new funding will also be used to develop other sustainable building products. The company is additionally looking to licence its technology to the large building products manufacturers and has already started conversations with potential partners.

Tom Robinson, the chief executive officer and founder of Adaptavate, said “This funding round is a pivotal point in the acceleration of Adaptavate and our aim to be the world leader in this space. With the support of like-minded funding partners, we are leading the carbon revolution of building materials as a form of carbon capture and utilisation. What I am most pleased about is that this funding round was oversubscribed, which shows the appetite for near to market, industrially scalable carbon absorbing technologies, even at an economically challenging time.”

France: Etex subsidiary Siniat plans to install a new boiler, fired by either solid recovered fuel (SRF) or waste wood, at its Auneuil gypsum wallboard plant in Oise Department. The producer expects this to reduce the plant's gas consumption by 20%. The L'Usine Nouvelle newspaper has reported that the project is part of a planned Euro30m sustainability overhaul of equipment at the plant before 2026. Siniat recently brought the Auneuil plant back online following the installation of a new Euro15m dryer in early 2023, which increased wallboard drying times by 10% and reduced gas consumption by 20%. The producer said that this has eliminated 5900t/yr of CO₂ emissions.

From the remaining Euro3m of its allotted budget for sustainability upgrades, Siniat will build a gypsum recycling plant at the Auneuil gypsum wallboard plant. It currently receives its recycled gypsum from Ritleng Revalorisations' gypsum recycling plant in Rohr, Bas-Rhin Department. Currently, natural gypsum from the Le Pin-Villeparisis and Montmorency mines accounts for 40 - 60% of the Auneuil plant' gypsum consumption.

Montenegro: UK-based private equity firm Chayton Capital has agreed to fund the feasibility study for the establishment of a joint public/private building materials production complex at the site of the Plejevlja energy hub. The complex will include a gypsum wallboard plant. Emerging Market Watch News has reported that the firm will also be involved in the modernisation of a coal-fired power plant at the site. The total budget for the project is Euro700m.