Gypsum industry news

New Zealand: Revenue from Fletcher Building’s Building Products division rose by 9% year-on-year to US$514m in the first half to 31 December 2021 from US$471m in the same period in 2020. Earnings before interest and taxation (EBIT) fell by 6% to US$68.6m from US$64.6m. The building materials producer, distributor and construction company blamed the declining earnings on a coronavirus-related lockdown in the summer of 2021, although it noted improved performance in the following quarter. Overall group revenue and earnings grew in the reporting period.

“With improved operational performance and cost disciplines now embedded across the business, we were able to deliver a strong performance. This was despite the first quarter being heavily impacted by the up to five week-long Covid-19 stringent lockdown in New Zealand and local lockdowns in Australia which impacted EBIT,” said Fletcher Building’s chief executive officer Ross Taylor.

Fletcher Building’s subsidiary Winstone Wallboards is currently building a new 10Mm²/yr gypsum wallboard plant at Tauriko near Auckland. Commissioning is planned for the group’s 2023 financial year that starts in June 2023. Once completed the company says it will have a total national wallboard production capacity of 40Mm²/yr.

US: Mineral Technologies has estimated that its total full-year gypsum and lime products sales will rise by 6% year-on-year in 2021 to US$330m from US$310m in 2020. It attributed the anticipated rise to a reordering of its operations away from restrictive Covid-19 containment measures and the return of demand growth to its markets. Business Research Company Reports has reported that the global lime and gypsum products market was worth US$55.2bn in 2020, of which Mineral Technologies held a 0.6% share.

New Zealand: The New Zealand government has announced the lifting of Level 4 lockdown outside of Auckland. Radio New Zealand News has reported that this will enable construction to resume. Inside Auckland, gypsum wallboard is among four ‘critical products’ that the government has allowed to resume production.

The Building Industry Federation (BIF) said that the government had listened to suppliers' concerns.

Australia: Albacutya Gypsum, based in Victoria, has been embroiled in confusion surrounding a five-day snap coronavirus lockdown in the state. The agricultural gypsum business, which operates from a quarry in Rainbow, was forced to temporarily close in mid-February 2021 due to uncertainty over whether it was an essential service or not, according to the Australian Broadcasting Corporation. However, local farmers, who are deemed ‘essential’ continued to require the product. The owners say the closure cost them around US$15,000 in lost income.

Oman: Oman’s gypsum exports fell by 4% year-on-year to 4.99Mt in the first seven months of 2020 from 5.20Mt in the same period in 2019. However, data from Zawawi Minerals shows that exports picked up by 28.7% year-on-year to 1.14Mt in July 2020 from 0.89Mt in July 2019. The government allowed industry to reopen in late June 2020 following a coronavirus-related lockdown.

UK: Matt Pullen, the managing director of British Gypsum, says that the company intends to loosen restrictions on wallboard sales in August 2020. “Whilst we continue to see high levels of demand, we have sufficient capacity to supply your wallboard requirements without formal supply restrictions,” said Pullen. He added that the company’s plaster manufacturing plants continue to, ‘operate consistently at maximum capability.’

Gypsum plaster-based products have been in short supply in the UK since the local coronavirus-related lockdown started in March 2020. The subsidiary of Saint-Gobain suspended operations in April 2020 and Knauf stopped production at its wallboard plants in the UK at the end of March 2020. British Gypsum reported in late May 2020 that its wallboard capacity was at ‘approximately’ 80% of pre-coronavirus pandemic levels following the scaling up of its ‘Covid-19 safe’ operations and distribution plan. Etex’s Siniat said it was ending product allocation controls in early July 2020.

Oman: The Ministry of Municipalities and Regional Resources says that commercial and industrial activities including gypsum manufacturing and installation can re-start operating following a coronavirus-related lockdown. The latest group of activities cleared to reopen covers over 50 commercial and industrial activities, according to the Times of Oman newspaper. The government initially implemented a lockdown in Muscat in early April 2020.

US: Gypsum wallboard distributor Foundation Building Materials reports that sales of wallboard fell slightly to US$202m in the first quarter of 2020. This was attributed to disruption caused by the coronavirus outbreak. Overall its sales across all business lines rose, in part due to an additional business day in the reporting quarter compared to the same period in 2019. It noted lower sales growth in states with stronger lockdown measures, including Washington, California, Michigan, New Jersey and Pennsylvania. Overall sales in April 2020 were reported as being 20% down year-on-year.