Gypsum industry news

France: Saint-Gobain recorded sales of Euro51.2bn during 2022, up by 16% year-on-year from Euro44.2bn in 2021. The group reported that its sales volumes fell by 1.3% year-on-year. It nonetheless recorded growth in revenues of 9.2% in Northern Europe, 8.2% in Southern Europe, the Middle East and Africa, 33% in the Americas and 19% in Asia-Pacific.

During the year, Saint-Gobain made Euro3.8bn-worth of divestments, including of its Polish and UK distribution businesses, and Euro1.9bn-worth of new acquisitions.

CEO Benoit Bazin said “In an unsettled geopolitical, energy and macroeconomic environment in 2022, the group once again delivered record results. The group’s profile has been profoundly optimised: one-third of the group’s scope has changed in the past four years and over 60% of our earnings now come from North America and emerging countries." Bazin continued "I am confident that 2023 will be a good year for Saint-Gobain. Our roadmap is clear: disciplined execution of the Grow & Impact strategic priorities, leveraging the strength of our operating model against the backdrop of a slowdown in new construction but good resilience in renovation."

New Zealand: Fletcher Building says it will stop using retroactive quantity-based rebates after it learned that the Commerce Commission had started an investigation into the practice in November 2022. The owner of Winstone Wallboards defended the use of such rebates and said they were common in the sector. However, it added that it was showing ‘leadership’ and had considered the commission’s preference that it not use quantity rewarding rebates. It will instead switch to a flat pricing model based on volume.

The Commerce Commission published its final report look at general residential building supplies following the release of a draft in August 2022. It set up nine recommendations to improve competition and supply of such products generally. Two main factors it identified as making it difficult for competing products to be introduced and expand in the market were the building regulatory system and quantity-forcing rebates paid by established suppliers to merchants. It noted that, under certain conditions, these types of rebate could reinforce the way the existing regulatory system was making it harder for new or competing products to access the market.

Romania: Grenzebach Romania has broken ground on its construction of its upcoming Iasi production centre. The equipment supplier plans for the centre to serve as a hub for its European building materials, glass and intralogistics activities. Grenzebach chief executive officer Steven Althaus said that the group is expanding to meet growing European demand in the sectors in which it operates, while also creating 100 new jobs for Romanians.

New Zealand: The government has renamed its Plasterboard Taskforce as the Critical Materials Taskforce and extended its remit to other building materials alongside gypsum wallboard. The expanded taskforce's aim will be to prevent product shortages, with a focus on maximising productivity and cushioning the effects of supply-side dangers. The government foresees further materials shortages amid anticipated 'global trade headwinds.'

Minister for Building and Construction Megan Woods said “While we can be optimistic about the opportunities for our economy, we also need to remain cautious. We know we are facing a period of global turmoil." Woods continued “The Critical Materials Taskforce will build on the successes of the Plasterboard Taskforce, and use the valuable lessons learnt to be proactive and forward-looking, so we can identify emerging risks and respond as quickly as possible. Bringing together construction, building consent and supply chain experts into a taskforce earlier this year showed how government and the sector successfully worked together to troubleshoot plasterboard shortages quickly and pragmatically.”

New Zealand's gypsum wallboard imports grew by a factor of five year-on-year to 4.6Mm² during the first 10 months of 2022. Domestic producer GIB said that it will continue to operate at full production capacity through the 2022 Christmas - New Year period in order to rebuild resilience stock levels. The company continues to make deliveries based on an allocation system. It asked customers to contact their retail suppliers if they have any spare pallets for collection, to help with deliveries.

World: Market research and consulting services provider Exactitude Consultancy has projected a composite annual growth rate in global gypsum demand of 4.2% between 2022 and 2029. The consultancy forecast that the market would reach US$2.14bn in value at the end of the period, up by 45% from US$1.48bn in 2021.

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.

New Zealand: Members of the building sector report that a local shortage in gypsum wallboard has started to ease. Christchurch-based Co-operative Building Supplies chair Carl Taylor told Radio New Zealand News, that since Winstone Wallboards announced a number of corrective measures in June 2022, supply had improved a "fair bit" but it was not back to levels seen before the Covid-19 pandemic started. Rick Herd, the chief executive officer of building company Naylor Love, added that Winstone Wallboards had increased its production but that a reduction in market demand had also helped.

In late September 2022, Winstone Wallboards’ general manager David Thomas thanked his customers for their patience. He added that the company was getting closer to levelling up supply with demand for wallboard across the country. Parent company Fletcher Building Materials previously said that it expected the market to stabilise by October 2022. Winstone Wallboards’ GIB product range is the main brand of wallboard used in New Zealand. The company is reported to hold around a 95% share of the local market.

US: Gypsum wallboard producers sold 1.32Bnm² of gypsum wallboard in the first half of 2022, a similar amount to that in the first half of 2021. Total supply of gypsum fell by 2% to 20.3Mt from 20.8Mt. This was due to decline in mined gypsum supplies, although imports rose and synthetic gypsum supply remained the same.

Exports of gypsum wallboard fell slightly year-on-year to 18.6Mm² throughout the second quarter of 2022, up by 10% year-on-year from 16.9Mm². Canada received 95% of US gypsum wallboard exports. The US imported 22.9Mm² of gypsum wallboard from eight countries. The figure corresponds to an increase of 10% year-on-year and 3% quarter-on-quarter. Mexico supplied 91% of US gypsum wallboard imports, followed by Canada with 8%.

New Zealand: Fletcher Building Materials recorded consolidated sales of US$5.37bn during its 2022 financial year, up by 4.7% year-on-year from US$5.13bn in the previous year. Its net earnings also rose by 42%, to US$273m from US$193m.

The group's building materials division, which includes Winstone Wallboards, contributed US$1.02bn-worth (17%) of group sales. The business delivered 'strong' volumes, with pricing initiatives effectively offsetting cost inflation. The latter particularly impacted imports of raw materials. The business made capital expenditure investments of US$129m, of which US$98.4m went towards the construction of Winstone Wallboards' upcoming Tauriko gypsum wallboard plant in the Bay of Plenty region. The plant's commissioning in 2023 will increase the company's production capacity by 30% and reduce its CO₂ emissions and waste generation.

Fletcher Building Materials chief executive officer Ross Taylor said "The 2022 financial year has not been without its challenges. Global and national supply chain disruptions have continued into the third year of the Covid-19 pandemic. In New Zealand, surging plasterboard orders following the first quarter lockdown outstripped our ability to supply, despite our manufacturing facilities running at record levels. In recognition of our key role as a local manufacturer in keeping the market supplied, we carried out a range of measures to address the shortage including operating production lines 24/7, running down inventory, importing additional product, and establishing an emergency supply pool." Taylor added "The New Zealand Commerce Commission recently published its interim market study report into residential building supplies. The final report and recommendations will be published in December 2022 and in the meantime we will continue to work collaboratively with both the commission and the government."

New Zealand: The Commerce Commission has said that builders have found it difficult to substitute alternative brands of gypsum wallboard because the building material is commonly specified by brand in building plans. Differences in consenting decisions by local government authorities and quantity-forcing rebates for wallboard have also been identified as making it harder for builders to source supplies. The regulator has been investigating general residential building supplies since November 2021 and made the comments as part of a draft report.
Commission chair Anna Rawlings said “Our preliminary view is that competition for the supply of key building supplies is not working as well as it could, and would be improved if it was easier for building products to be introduced and for competing suppliers to expand their business.”

The draft report has found certain brands of product have become ‘embedded’ in home-building practice in New Zealand and has recommended that the building regulatory system should include competition as a deliberate objective. It added that, in some circumstances, some types of rebates paid by established suppliers to merchants appeared to be reinforcing difficulties faced by competing products. The commission will now take comment on its draft report until September 2022. The final report will be published in December 2022.

Winstone Wallboards’ GIB product range is the main brand of wallboard used in the country. The company is reported to hold around a 95% share of the local market. Wallboard shortages have been reported since mid-2021.