Gypsum industry news

Brazil: Saint-Gobain plans to expand the capacity of its Mogi das Cruzes gypsum wallboard plant with the installation of a third production line. The plant will produce wallboard with its expanded capacity from early 2023. The Mogi das Cruzes plant currently has a gypsum wallboard production capacity of 22Mm²/yr.

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.”

Azerbaijan: Azerbaijan’s total production of construction gypsum was 17,100t in the first eight months of 2021, up by 33% year-on-year from 12,900t in the corresponding period of 2020.

On-going large-scale state construction projects the new territories East of Zangazur and Karabakh are anticipated to increase full-year gypsum production in 2021 and into subsequent years.

UK: Adaptavate and the University of Bath have produced alternative gypsum-free wallboard from compostable crop waste. The partners have received funding from the National Biofilms Innovation Centre (NBIC) for a six-month pilot project of production of their prototype wallboard, called Breathaboard. It uses the natural properties of bacteria to form a board with similar properties to gypsum wallboard. The producers claim that it is both lighter and more insulative than gypsum wallboard. They hope to scale up production and market Breathaboard as an environmentally friendly alternative to gypsum wallboard, as it does not require gypsum extraction or flue gas desulphurisation (FGD) at coal-fired power plants.

Project leader Susanne Gebhard said “This is an exciting project that will see whether we can exploit the natural biofilm-forming abilities of bacteria to function as a kind of glue that will help improve the properties of biodegradable construction materials.”

China: Financial analyst Jefferies has estimated that Chinese gypsum wallboard sales will retain their current strength despite a property sector crash following the collapse of developer China Evergrande. Dow Jones has reported that the analyst rated the gypsum wallboard industry as 20 - 30% exposed to effects in the property market. It contrasted this with other building materials such as float glass and coatings which are 50 - 70% exposed to the present fallout.