Gypsum industry news

US: Georgia-Pacific will close its 60Mm²/yr Quanah gypsum wallboard plant in Texas on 1 March 2023. Local press has reported that the plant employs 166 people. Georgia-Pacific first announced its planned closure in 2020.

Russia/Ukraine: Jörg Schanow, a member of the management board of Knauf, says that the company has no plans to leave the Russian market. In an interview with the Süddeutsche Zeitung newspaper he said that Russian production sites were still running as normal.

The company has set up crisis management team since the start of the war in Ukraine in late February 2022. It has been meeting daily and discussing the situation with local management in Russia. Schanow said that the biggest business problem so far was the effect of US and European economic sanctions upon Russian banks and the consequences upon moving money between banks, suppliers and customers. The Germany-based company employees 3900 staff at 14 sites in Russia. It originally purchased a gypsum plant at Krasnogorsk near Moscow in 1993.

Knauf also has operations in Ukraine. It closed its gypsum wallboard plant in Donbass in response to the current war on 24 February 2022 ‘as a precaution,’ according to the TZ newspaper. The staff were sent home and the plant will remain closed into further notice. The plant had 589 employees at the end of 2021, none of whom where German nationals.

Canada: The Canadian Gypsum Company (CGC) has temporarily closed part of its wallboard plant in Hagarsville in Ontario due to a coronavirus outbreak amongst its employees. Around half of the 250-strong workforce at the site has been sent home, according to the Norfolk & Tillsonburg News. The plant’s mine has also been closed. The company said it had acted "out of an abundance of caution" and it is working with local health services.

Armenia: The government has included cement production under a list of permitted economic activities able to resume from 16 April 2020. Azbarez News has reported that the present lockdown is scheduled to continue until 15 May 2020.

Australia: Boral has reported that, in most jurisdictions, its activities are currently considered to be within the critical infrastructure and construction sectors that are permitted and encouraged to continue as essential businesses. This includes Boral’s US Fly Ash business, which provides an essential service to the energy sector. In some areas however, particularly in North America and Asia, more stringent mandates and restrictions have resulted in temporary closures of several operations.

In addition, demand is declining in most markets and is expected to continue to decline, particularly in residential construction markets where the pipeline of work is substantially reducing in all geographies.

As a result, where it has sufficient inventory levels to supply customers, production curtailments are planned and are now taking place, including shift reductions and temporary plant closures. Boral says that these actions will help to conserve cash and minimise any unintended inventory build-up.

Boral is supporting employees impacted by temporary closures with access to paid leave, unpaid leave, flexible and remote working arrangements (where possible) and assistance with accessing relevant government support.

UK: France-based Saint-Gobain subsidiary British Gypsum has announced the suspension of non-essential operations until 22 April 2020, subject to regular review in light of government advice. British Gypsum managing director Matt Pullen said, “Further information on when new orders can be placed and deliveries made will be available nearer the time, after the safe re-start of our operations.”

The company says that it will retain a ‘small-scale customer services, operations and logistics team to be able to provide drylining products to support those NHS and other Covid-19 response essential infrastructure and building projects.’

US: Continental Building Products says it has been confronting a ‘sluggish’ new home construction market in the second quarter of 2019. Jay Bachmann, president and chief executive officer (CEO), said that the company was expecting the market to recover in the second half of the year and its improvement programme to reduce costs. Its net sales fell by 4% year-on-year to US$246m in the first half of 2019 from US$256m in the same period in 2018. Its net income dropped by 34% to US$28.8m from US$35.5m. Its gypsum wallboard volumes fell slightly by to 123Mm².

The wallboard producer also said that the shutdown of its Buchanan plant in New York due to mechanical failure might cause a boost operating income and earnings before interest, taxation, depreciation and amortisation (EBITDA) of up to US$2m once an insurance claim is settled. The plant was shut from January 2019 to 15 March 2019. The company increased production at its plants in Silver Grove, Kentucky and Palatka, Florida to offset a portion of the lost production from the Buchanan plant.

US: Continental Building Products says that a significant equipment malfunction took place at its Buchanan gypsum wallboard plant in New York state on 24 January 2019. The plant will likely be shut until the end of February 2019 to make repairs. Standard insurance coverage is expected to pay for the maintenance work. No staff injuries occurred during the incident.

"We apologise to our customers for any disruptions caused by these supply constraints," said Jay Bachmann, president and chief executive officer (CEO) of Continental building Products.

The company expects to limit new orders for shipments normally delivered from our Buchanan plant during the shutdown. The 60Mm² plant represents about 20% of the company’s wallboard production capacity. Plants in Silver Grove, Kentucky and Palatka, Florida will make up some of the shortfall while the Buchanan plant is being repaired. However the company admitted that due to ‘capacity constraints, logistics and product availability’ the two plants will be unable to make up for all of the lost production.