Gypsum industry news

Belgium: Etex has appointed Bernard Delvaux as its chief executive officer (CEO) with effect from 1 January 2022. He will succeed Paul Van Oyen when he retires at the end of 2021. Delvaux has held senior executive roles for over 30 years in large groups such as bpost, Proximus and Sonaca. Van Oyen joined Etex in 1990 as a laboratory and project manager active in the research and development department. He became the CEO of Etex on 2015.

Norway: France-based Saint-Gobain plans to upgrade its 13Mm²/yr Fredrikstad gypsum wallboard plant in partnership with state-owned sustainable energy agency Enova. The Euro25m upgrade will expand the plant’s production capacity by 40% and make it, what the producer says, is the world's first carbon-neutral plasterboard plant. One feature of the plan is electrification of the currently gas-powered production process. The upgrade will be completed in early 2021.

Saint-Gobain is considering implementing the net-zero CO₂ plant project across others of its gypsum wallboard plants.

Saudi Arabia: National Gypsum’s three-month profit in the first quarter of 2021 declined by 23% year-on-year to US$7.20m from US$9.33m in the first quarter of 2020. During the quarter it recorded a net profit of US$3.78m, down by 20% from US$4.72m.

US: Eagle Materials recorded consolidated net sales of US$1.62bn in its 2021 financial year, up by 16% year-on-year from US$1.40bn. Its net earnings quadrupled to US$339m from US$70.9m. Its gypsum wallboard sales volumes increased by 6% to 265Mm² from 265Mm². The building materials producer increased its wallboard prices during the second half of the year due to improved demand outlook for single-family construction activity in the US and increasing demand for our products.

President and chief executive officer Michael Haack said, “Across all measures, fiscal 2021 was extraordinary for Eagle as we met and overcame challenges that were inconceivable just a year earlier. The resilience of our business model, our financial discipline and our team’s operational and strategic execution allowed us to deliver record financial results, integrate the largest acquisition in the company’s history and further streamline our business portfolio by divesting several non-core businesses, all while achieving industry leading safety performance. Our strong operating cash flow enabled us to reduce leverage to under 1.5 times net debt-to-earnings before interest taxation depreciation and amortisation (EBITDA), providing us with significant liquidity and increased financial flexibility.” He continued “As we begin our new fiscal year, Eagle is well-positioned, both geographically and financially, with ample raw material reserves to capitalise on the underlying demand fundamentals that are expected to support steady and sustainable construction activity growth over the near and long-term. We remain confident in Eagle’s prospects for continued growth and sustainable value creation for all shareholders.”

Australia: Boral has rejected a proposed US$5/share takeover bid by Seven Group Holdings. The building materials producer received the bid on 10 May 2021 and then rejected it the following day, according to the Financial Review newspaper. Seven Group Holdings started buying shares in Boral in March 2020 and reached a 23% stake in the company by April 2021. Boral has continued a share buy-back programme it commenced in April 2021 as part of its response to the takeover attempt. Sources quoted by the newspaper also expect Boral to work with investment bank Jarden Australia in retaliation to Seven Group Holdings’ actions.