Gypsum industry news
Continental Building Products shuts down Buchanan gypsum wallboard plant after mechanical failure
31 January 2019US: 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.
Eagle Materials grows gypsum wallboard business
30 January 2019US: Eagle Materials’ revenue rose slightly to US$1.11bn in the nine months to 31 December 2018. Revenue from its Light Materials business, including gypsum wallboard, grew by 3% to US$479m from US$467m. Gypsum wallboard production dropped slightly to 185Mm2. Operating earnings increased by 13% to US$166m from US$146m.
“Adjusting for the effects of unusual weather trends during 2018 and a shift in the timing of wallboard price increases and related buying activity, we estimate that the overall market demand for our building materials, notably cement and wallboard, remained in positive territory in 2018, with growth rates in the low single digits,” said chief executive officer (CEO) Dave Powers.
US: Jennifer F Scanlon, the chief executive officer (CEO) of USG, plans to leave the company following the completion of its acquisition by Germany’s Knauf. The acquisition is expected to complete in early 2019 subject to regulatory approval and certain closing conditions.
Scanlon has held leadership roles at USG for 16 years. As a senior executive, she was involved in the company establishing the USG Boral Building Products joint venture and the divestiture of L&W Supply Corporation. Scanlon became USG’s president and CEO in November 2016.
“It has been a great privilege to serve as president and CEO of USG, and I am very proud of the work done by the USG team to align our strategy with customer needs and accelerate innovation,” said Scanlon.
In addition to Scanlon’s anticipated departure other members of USG’s executive team are expected to leave the company. These include: Matthew F Hilzinger, Executive Vice President and chief financial officer (CFO); Brian J Cook, Executive Vice President and Chief Administrative Officer; Dominic A Dannessa, Executive Vice President and Chief Customer and Innovation Officer; Gregory D Salah, Senior Vice President, USG Corporation and President, Gypsum; and Michelle M Warner, Senior Vice President, General Counsel and Corporate Secretary.
Gypsum Association releases new edition of GA-600 Fire Resistance and Sound Control Design Manual
20 December 2018US: The Gypsum Association (GA) has released the 22nd edition of its GA-600-2018 Fire Resistance and Sound Control Design Manual. Revised on a three-year cycle, GA-600 has been referenced by the model building codes as a source of fire-resistive designs for more than 40 years. The 2018 edition contains more than 140 new systems that supplement existing designs for walls and partitions, floor-ceiling systems, area separation firewalls and other assemblies.
GA-600 is currently referenced by the International Building Code, the National Fire Protection Association Codes (NFPA 703 and NFPA 5000), as well as many state and local jurisdictions in the US and Canada as a source document for fire-resistance and sound-control rated designs that incorporate gypsum board in a variety of building systems.
GMS benefits from Titan acquisition and rising prices
05 December 2018US: GMS’s half-year wallboard sales have risen due to its acquisition of Canada’s Titan on 1 June 2018 and rising prices. Its wallboard sales rose by 14% year-on-year to US$652m in the half year to 31 October 2018, from US$573m in the same period in 2017. Overall, the wallboard distributor’s net sales increased by 25% to US$1.61bn.
Continental Building Products’ sales rise on demand
12 November 2018US: Continental Building Products’ net sales increased by 8% year-on-year to US$387m in the first nine months of 2018 from US$358m in the same period in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 13% to US$111m from US$98.8m. Its wallboard sales volumes grew by 7% to 67Mm2 from 62.6Mm2. it attributed the growth in sales volumes to ‘strong’ demand in its markets.
Gypsum Association revises GA-216 Application and Finishing of Gypsum Panel Products from 2019
12 November 2018US: The Gypsum Association has revised its GA-216 Application and Finishing of Gypsum Panel Products technical document. It has been revised in 2018 to fit a three year cycle to coincide with the 2021 code revision cycle and to better align with the Association’s other code-referenced documents, namely GA-600 Fire Resistance and Sound Control Design Manual and GA-253 Application of Gypsum Sheathing. GA-216 is referenced in the International Building Code (and other I-Codes) as well as NFPA 5000 as a standard for the application and installation of gypsum panels.
The 2018 specification provides appropriate installation methods for the various types of gypsum panels. New to the 2018 specification is clarification of language on steel studs and abuse-resistant and impact resistance panel products and updated criteria for panel installation over concrete. Direct adhesion to concrete is no longer acceptable; panels must be installed on framing. Also, GA-223 Gypsum Panel Products, Types, Uses, Sizes, and Standards has been added to the appendix as a reference to ASTM standards and Gypsum Association publications that provide additional information and specifications.
US: Eagle Materials’ sales revenue from gypsum wallboard rose in the first half of its financial year to 30 September 2018 due to higher prices. Its revenue from wallboard grew by 9% year-on-year to US$272m from US$250m. Its wallboard sales volumes increased by 3% to 124Mm2 from 121Mm2. The building materials producer said that Hurricane Florence had disrupted its southeastern markets reducing salese in the second quarter. Overall, the company’s sales across all businesses rose.
USG’s profit takes a hit in first nine months of 2018
29 October 2018US: USG’s operating profit fell by 30% year-on-year to US$190m in the first nine months of 2018 from US$270m in the same period in 2017. The building materials company blamed this on rising costs in the third quarter, arising from transport costs and non-production costs linked to its Customer-First strategy. Despite this, net sales rose by 6% to US$2.52bn from US$2.37bn.
The company is currently being acquired by Germany’s Knauf. The takeover is expected to complete in early 2019. In its third quarter financial report USG said that Boral had started proceedings in late August 2018 to determine the value of the USG Boral joint venture. This process could lead to Boral exercising its right to purchase USG’s 50% interest in USG Boral.
USG shareholders approve acquisition by Knauf
28 September 2018US: USG shareholders have approved an agreement and plan to accept Knauf’s takeover of the company. Approximately 99% of all votes cast voted in favour of the adoption of the agreement, representing approximately 88% of all outstanding shares as of 21 August 2018. Adoption of the merger agreement by USG stockholders is a condition to the closing of the merger. The merger is subject to certain other customary closing conditions, including receipt of regulatory approvals. The company currently expects the deal to close in early 2019.