Gypsum industry news

UK: A waste company has been ordered to pay Euro18,968 in fines and costs for illegally handling, storing and depositing wallboard. The case was brought by the Environment Agency.

In October 2012 approximately 60t of broken wallboard from Tawmix Timber Products Ltd was found tipped on a site known as Poppy's Field beside an old airfield at Winkleigh, Devon. The material was contaminated with construction and demolition waste. A special permit is needed to treat and store this type of waste. In July 2013 similar wallboard was illegally used to construct a new fence at Tawmix Timber Products' business premises at Unit 2, Winkleigh Airfield.

North Devon Magistrates' Court heard that Tawmix Timber Products was permitted to store, sort, separate, screen or crush waste wood at its site in Winkleigh. However, it did not have permission to accept gypsum based construction material such as wallboard, which requires specialist handling, treatment and disposal. The company had received advice and guidance from the Environment Agency on plasterboard and was aware it needed a 'variation' to its permit before it could accept this material.

"Wallboard should only be recycled and recovered by specialist companies," said Environment Agency spokesman Sue Smillie. "Tawmix Timber Products did not hold the necessary permits to store, shred and deposit this material. By accepting wallboard on Poppy's Field and depositing wallboard at its main site, the company was in breach of its permit."

Tawmix Timber Products Ltd was fined a total of Euro15,167 and ordered to pay Euro3713 costs for two offences under the Environmental Permitting Regulations 2010, including the illegal storage and use of chipped wallboard at Poppy's Field and Unit 2, Winkleigh. The company pleaded guilty to both charges at an earlier hearing.

US: China's Taishan Gypsum Co Ltd, which was accused of manufacturing substandard gypsum wallboard, has been ordered not to conduct business in the United States.

The US District Court for the Eastern District of Louisiana found Taishan in contempt for failing to appear on 17 July 2014 for a hearing related to a US$2.6m judgment that it has refused to pay to seven Hampton Roads families.

The China-based company had previously claimed that US courts did not have jurisdiction in a lawsuit filed by the affected families. After losing that argument in the US 5th Circuit Court of Appeals in early 2014, Taishan chose not to file an appeal with the US Supreme Court. Taishan made no move toward paying the judgment or working out a settlement, so it was called into court to explain its actions.

"We will be pursuing them until hell freezes," said Arnold Levin, an attorney who had argued in New Orleans on behalf of the families.

For failing to appear, Taishan was ordered by US District Judge Eldon Fallon to pay US$15,000 in attorneys' fees and US$40,000 in penalties. He also prohibited the company from conducting business in America and declared that if it did, it would have to forfeit 25% of its profits. Fallon chided Taishan's leaders for participating in the legal process until they lost and then deciding to 'thumb their nose at the court' by not following his orders.

Fallon sent his ruling to the US secretary of commerce, the chair of the Senate Committee on Commerce, Science and Transportation and the US Attorney General's Office to take 'any appropriate action they may see fit.'

US: Tennessee State has launched a crackdown on construction companies classifying full-time workers as contractors in order to avoid taxes and insurance. A US$300,000 fine for misclassifying construction workers may be having a deterrent effect, according to officials with the Tennessee Department of Labour. The penalty was the largest to date in a state-wide crackdown on labelling full-time employees as contract workers.

TJ Drywall of Nashville was making US$2m/yr, but only paying 5% of what regulators say that they should have been in workers compensation and unemployment insurance premiums.

The Labour Department's Scott Yarbrough said that the practice remains rampant in the construction industry. "It upsets me when somebody who is following the rules, paying their insurance and paying their taxes like they're supposed to, is trying to compete with people who aren't."

After seeing the giant fine imposed, Yarbrough said that another business owner in Sumner County volunteered to reclassify his contract workers to avoid a fine. The money collected in fines for misclassifying employees will go toward hiring more investigators.