Gypsum industry news

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.

Spain: Italy-based Fassa Bortolo has announced plans for its upcoming Tarancón gypsum wallboard plant in Cuenca, Castile-La Mancha. The producer says that it plans to invest Euro90m in the project. Local press has reported that the company plans to hire 200 new employees to work at the plant.

India: Saint-Gobain India is planning to invest around US$215m towards capacity expansion plans in 2023. The building materials producer said in an interview with the Financial Express newspaper that it is part of a wider scheme to spend up to US$970m between 2022 and 2025. It aims to increase its annual revenue to US$3.7bn by 2030. The expenditure is separate from any plans for mergers and acquisitions. The company is expanding all its businesses in the country, including gypsum wallboard, glass, construction chemicals and ceramics.

Georgia: Knauf inaugurated a new Euro30m plaster plant in Georgia on 13 October 2022, Sarke News has reported.

Georgian Minister of Economy Levan Davitashvili said that Georgia's current 'high economic growth' is partly due to Knauf's continued investment in its gypsum activities in the country. Davitashvili noted that Knauf has trained 1000 people at its construction industry training centre since 2018.

The minister said that Knauf continually raises the Georgian building materials industry to 'new standards.' He added "The professional knowledge brought by the company and the technologies introduced by it are also very important."

Romania: Germany-based Knauf has announced plans for the construction of a new gypsum wallboard plant at Huedin in Cluj County. The company said that it plans to invest Euro76m in the plant’s construction. It says that the investment will advance the Romanian government's 'energy savings offensive' by supporting a renovation drive for the country’s housing stock. The government aims to increase the national area of modern renovated properties by a factor of six, with a Euro30bn allocation from its Recovery and Resilience Fund.

Knauf's managing partner Alexander Knauf said “The commitment demonstrates our trust and confidence in the country and our employees. We look forward to becoming part of the local community. Together, we are setting new standards for building and living in Romania.”

Knauf had previously planned to build a 35Mm²/yr gypsum wallboard plant at Huedin at a cost of Euro70m. A mine at nearby Aghireșu would supply the planned plant with raw materials. The Aghireșu mine reportedly has 100 years' worth of gypsum reserves. Knauf first delayed its Huedin plant plans in 2009 in light of the economic situation at that time.