Gypsum industry news

Norway: Saint-Gobain has started producing net zero CO₂ gypsum wallboard at its Fredrikstad plant. This was made possible by switching the power supply for the unit to hydroelectric power from natural gas previously. It worked with state-owned sustainable energy agency Enova on the Euro25m upgrade project. Following the completion of work at the site it will now avoid emitting 23,000t/yr of CO₂. Improved heat recovery and process efficiency will reduce energy consumption by 30%. Plus, the company says that the plant’s production capacity has been increased by 40%.

The group says that this is the world's first carbon-neutral wallboard plant and it will enable it to launch a range of products with the lowest carbon footprint on the market in 2023. It added that the this initiative was a clear indication of the company’s commitment to reduce its scope one and two CO₂ emissions by 33% by 2030 compared to 2017, with a commitment to becoming carbon neutral by 2050

US: USG says that the Science Based Targets initiative (SBTi) has approved its 2030 emission reduction targets. The subsidiary of Germany-based Knauf said that it was one of just a few companies in the US building-product sector that has signed onto SBTi. The company has agreed to reduce its carbon emissions from manufacturing (Scope 1 and 2) at the WB-2°C (well below 2°C) level, which equates to a 30% reduction in greenhouse gas emissions by 2030. USG has also committed to reducing carbon emissions associated with purchased raw materials and services, transportation and waste generation (Scope 3) by 15% within the same period.

US: The city council of Glenwood Springs in Colorado is aiming to implement single-haul refuse collection in order to eliminate the dumping of recyclables by 2023, local press has reported. A review of waste management practices found that the city has a recycling contamination rate of just 8%, yet 80% of waste sent to landfill consists of recyclable materials. Eagle County Recycle operates the city's waste management facility. The company says that it supplies waste cardboard for gypsum wallboard backing production in neighbouring Oklahoma.

Manager Jesse Masten said “The mill in Oklahoma that we send the cardboard to actually makes the paper backing for wallboard. Then, that paper backing is potentially sent back to the American Gypsum gypsum wallboard plant in Gypsum and used for the wallboard that they’re producing.”

Belgium: Etex has launched its new Road to Sustainability 2030 circularity and decarbonisation strategy. The strategy sets out the company’s 2030 ambitions under five headings. Under health, safety and well-being, Etex aims to reach zero fatalities, burnouts or incidents of harm; under customer engagement, it aims to build a sustainable roadmap for each product platform by 2025; under diversity, equity and inclusion, it will extend its policies, procedures and practices across all teams. Meanwhile, under decarbonisation, Etex will reduce Scope 1 and 2 greenhouse gas emissions by 35% compared to 2018, and under circularity it will use over 20% of circular input as raw material, send zero waste to landfill, use 100% recycled packaging and reduce plastic packaging by 20% compared to 2018, offer a product take-back service across 80% of its European markets and dedicate 50% of its innovation resources to sustainability.

Chief executive officer Bernard Delvaux said “Today Etex has sustainability as a guiding compass of business transformation, with concrete objectives that reflect the company’s ambition. We are on an exciting journey towards improving sustainability in the short and long term. We know there is a long road ahead, which is why we invite all our stakeholders to further support us in becoming a leading benchmark in our industry.”

France: SaintGobain says that the Science Based Targets initiative (SBTi) has approved its CO₂ reduction targets. The group plans to achieve net zero CO₂ emissions, both direct and indirect, along its entire value chain by 2050. This will entail a reduction in CO₂ emissions of at least 90% in the three scopes by 2050, with additional sequestration projects planned for residual emissions.

Saint-Gobain's commitments to reduce, in absolute terms, by 2030 from 2017 its direct and indirect CO₂ emissions (scopes 1 and 2) by 33% and its scope 3 emissions, mainly linked to purchasing and transport, by 16% by 2030 was already validated in 2020 by the SBTi. The group says it will continue to accelerate its roadmap, notably through improvements in energy efficiency, product weight reduction, increased recycled content and the use of green energies, in order to align its targets with the most demanding trajectory, which limits the rise in temperatures to 1.5°C.

France: Saint-Gobain has launched a Euro1.5bn bond issue. The issue consists of three Euro500m tranches, with maturities of three, six and 10 years. It is linked to two indicators of Saint-Gobain sustainability targets, namely its progress towards a 33% reduction in Scope 1 and 2 CO₂ emissions and an 80% reduction in production waste between 2017 and 2030. The company said that the transaction will enable it to extend the average maturity of its debt with mid to long-term funding.

CFO Sreedhar Natarajan said “Sustainable growth is at the heart of Saint-Gobain’s business model. The issuance of a sustainability-linked bond demonstrates the strength of Saint-Gobain’s commitments set out in its environmental and social governance roadmap. The group aims in particular to tackle the big energy and environmental challenges faced by the world with its contribution to reduce CO₂ emissions in its operations, and also decarbonise construction and industrial activities through its sustainable solutions”

Switzerland: Sika’s sales were US$5.45bn in the first half of 2022, up by 18% year-on-year from first-half 2021 levels. The group also increased its operating profit during the half, by 23% to US$874m.

CEO Thomas Hasler called market conditions during the half ‘challenging.’ He continued “Thanks to our broad diversification, we operate in several markets with different levels of maturity, and we can leverage our solutions across a broad base. We were largely able to offset the increase in price for raw materials with higher product prices, and supply bottlenecks were resolved via our global procurement organisation. The current challenges will remain in the second half of 2022, but I am confident that we can meet our targets for 2022 thanks to our dedicated employees.”

Belgium: Saint-Gobain has appeared on climate charity CDP’s Climate Change A List 2021. The producer says that the listing recognises its environmental ambition and transparency. It has taken ‘significant and demonstrable action,’ including allocating Euro100m/yr until 2030 in capital expenditure and research and development funding to reduce CO₂ emissions. It employs an internal carbon
price for investment decisions, which has risen by 50% to Euro75/t for capital expenditure. For research and development, it is Euro150/t.

Senior vice president human resources and corporate social responsibility Claire Pedini said “This is a recognition of the progress made and the commitment of the group with regard to the fight against climate change. Saint-Gobain is a key player in this respect and demonstrates at all levels its leadership and responsibility: maximising the positive impact for our customers thanks to our solutions, whilst minimising our own footprint as part of our commitment to be carbon neutral by 2050.”

France: Saint-Gobain’s consolidated sales in the first nine months of 2021 were Euro32.9bn, up by 18% year-on-year from Euro27.9bn in the corresponding period of 2020. During the period, the company’s North Europe region’s sales increased by 18% to Euro11.2bn from Euro9.49bn, its Southern Europe, the Middle East and Africa sales increased by 18% to Euro10.6bn from Euro9bn, its Americas sales increased by 20% to Euro5.07bn from Euro4.22bn and its Asia-Pacific sales increased by 25% to Euro1.32bn from Euro1.06bn.

The group said that its strategic priorities are to accelerate its growth and impact and to continue profitability and performance-focused initiatives in order to maintain robust margins and strong free cash flow generation. In the full year of 2021, it is targeting record operating income and close-to-record second-half operating income.

France: Saint-Gobain has launched Grow & Impact, a new strategic plan to increase profitable growth. The plan consists of new annual financial targets for 2021-2025, including organic sales growth of 3 - 5%, an operating margin of 9 – 11%, a free cash flow conversion ratio above 50%, a return on capital employed of 12 - 15% and an annual dividend payout ratio representing 30-50% of recurring net income. The company also announced a Euro2bn share buyback programme for 2021 – 2025.

Saint-Gobain has forecast full-year energy and raw materials costs of Euro1.5bn, up by 36% from its previous estimate of Euro1.1bn. Euro1.1bn (73%) of the new estimate is forecast for the second half of 2021. The group said that it will need a positive price impact of around 6% over the full year and of 8% in the second half of 2021 in order to offset this. CEO Benoit Bazin said “The Group will build on the success of its new local organisation and its multinational culture driven by performance and by proximity to its customers, in order to benefit fully from strong growth on its underlying markets. By capitalising on innovation and the power of data to enrich our range of solutions, Grow & Impact will enable us to outperform our underlying markets and maximise our positive impact in numerous areas.” He added “Our vision is to become the worldwide leader in light and sustainable construction. In a world moving towards net-zero carbon, Saint-Gobain aims to provide a full range of solutions that address three major issues of our time: drastically reducing the 40% of CO2 emissions linked to construction, protecting natural resources and facing the challenge of rapid urbanisation in emerging countries.”