Gypsum industry news

US: L&W Supply has agreed to buy the eastern gypsum distribution operations of Builders FirstSource for an undisclosed sum. The transaction is subject to approval by competition bodies and is expected to complete in the third quarter of 2021.

“The Eastern Gypsum business acquisition supports L&W Supply’s overall growth strategy. With the additional locations in the northeast and southeast, we solidify our position in these markets and strengthen our partnerships with area contractors,” said Dan Piché, L&W Supply’s president.

Builders FirstSource originally entered into the gypsum business through the acquisition of Probuild in mid-2015. Its eastern gypsum operations consist of 21 facilities located throughout the northeast and southeast US which generated sales of approximately US$160m in 2020. L&W Supply is a distributor for gypsum wallboard, ceilings, steel framing and other building materials used by commercial and residential specialty contractors.

France: Saint-Gobain’s sales grew by 24.6% year-on-year to Euro22.1bn in the first half of 2021 from Euro17.8m in the same period in 2020. Earnings before interest, taxation, depreciation and amortisation (EBITDA) nearly doubled to Euro3.25bn from Euro1.64bn. Both sales and earnings were also higher than the comparable period in 2019.

“These first-half 2021 record results surpass even our second-half 2020 performance. This success reflects the profound positive changes in our organisation from Transform & Grow,” said Benoit Bazin, chief executive officer of Saint-Gobain. “It also reflects structural changes in our markets, which should show an acceleration in growth over the coming years.” The group added that it was planning to catch up with previously delayed expansion projects for the construction Industry and in façade and gypsum solutions in Mexico, India and China in the second half of 2021.

US: Eagle Materials’ gypsum wallboard sales grew by 28% year-on-year to US$166m in the first quarter of its financial year to 30 June 2021 from US$130m in the same period in 2020. Wallboard sales volumes rose by 8% to 70.9Mm² from 65.4Mm². Wallboard earnings increased by 53% to US$63.3m from US$41.3m. The building materials producer attributed its increased revenue to higher sales and prices.

“These results reflect strong market demand in both of our major business lines and exceptional operational execution by our team. Our wallboard business continues to benefit from robust residential construction activity across our markets,” said president and chief executive officer Michael Haack.

US: The Economic Development Department of the state of New Mexico has granted American Gypsum US$0.5m-worth of funding for an upgrade to its Albuquerque gypsum wallboard plant in Bernalillo County. The grant will facilitate equipment and infrastructure modernisation. The department says that the producer will invest US$22m in the state between 1 July 2021 and 31 December 2022. It employs 140 locals including Pueblo Indian people, in whose lands its gypsum mine is situated.

State Governor Lujan Grisham said "This investment means New Mexico jobs will stay in New Mexico. I'm glad the state could partner with American Gypsum and ensure long-term viability of their operations, and stabilise a New Mexico employer."

Canada: The Gypsum Association has partnered with Divert NS to support research at Dalhousie University into the use of recycled gypsum from construction waste in concrete production. Dalhousie University previously demonstrated that gypsum could be a viable supplementary cementitious material when combined with fly ash in concrete. In this second phase of research, the team aims to expand on the work to optimise concrete production methods and product quality.

Canada research chair in sustainable infrastructure Pedram Sadeghian said “As durability is important for construction materials, our research group at Dalhousie University aims to study the durability of concrete containing recycled gypsum by monitoring the compressive strength and potential expansion after exposure to selected environmental conditions such as moisture and salt particle penetration that are common for concrete structures exposed to the environment.”

Gypsum Association executive director Stephen Meima said “We are very pleased to join Divert NS in supporting research that may improve numerous environmental outcomes. The gypsum industry is committed to landfill diversion of construction and demolition gypsum panel waste, and Professor Sadeghian’s work demonstrates that waste gypsum panels may have value beyond their service life in buildings and homes.”