Gypsum industry news

US: The commissioners of New Hanover country in North Carolina have approved a US$0.35m incentive package for National Gypsum to open its Wilmington wallboard plant. The package will be offered over five years if the wallboard producer meets benchmarks that include investing US$25m in the plant and hiring at least 51 people at the site, according to the Star News newspaper. The city of Wilmington is also considering offering a package of US$0.23m. However, pollution concerns have been aired at public hearings about re-starting the plant.

US: Ultimate Software says that National Gypsum is using its UltiPro product to manage its human resources system. The gypsum wallboard producer is using the product to address challenges in manufacturing and cost control and manage its skilled workforce. National Gypsum started working with Ultimate Software in 2004 and it launched UltiPro's talent management solutions in 2015.

"I can say without exaggeration we are creating ad-hoc reports daily that look at data such as labour allocation, succession planning and global demographics," said Bruce Williams, director of human resources at National Gypsum. He added that the real-time reports aid the company to adapt to industry conditions, extend key resources and make cost savings. The software product has also enabled National Gypsum to reduce the size of its human resources team.

US: National Gypsum is considering reopening a gypsum wallboard plant in either Tampa, Florida or Wilmington, North Carolina. The wallboard producer plans to make its final decision late in 2018, according to the Greater Wilmington Business Journal. The Tampa plant was shut in 2008 and the Wilmington plant stopped operations in 2009. The company is planning to expand its presence in the south-east of the country.

US: National Gypsum, Eagle Materials and PABCO Building Products have agreed to pay US$125m to settle claims that they fixed the price of gypsum wallboard. A preliminary motion to approve the settlement is scheduled to be filed in January 2018, said David Young, a partner at Cohen Milstein Sellers & Toll, a lead plaintiffs’ firm in the litigation, according to the Legal Intelligencer newspaper. The legal firm and others are representing wallboard customers, including distributors and installers.

The three wallboard producers are the last of seven defendants of a lawsuit that started in 2013. Previous deals with Lafarge North America, Temple Inland and USG bring the total amount of settlements for direct purchasers in the case to over US$190m. A seventh company, CertainTeed, was granted summary judgment in 2016.

US: National Gypsum is upgrading its paper plant in Oxford, Alabama. The work includes replacing a boiler at the site first installed in 1950s, according to the Anniston Star newspaper. The investment is intended to reduce operational costs and increase energy efficiency. Paper produced at the plant is used in the manufacture of gypsum wallboard at the company's other plants. No value for the upgrade has been disclosed.

US: National Gypsum has published 17 health product declarations (HPD) for a range of products that cover nearly all of its interior wall systems.

"At National Gypsum, we recognize that sustainable building design isn't just a trend but has become the preferred business practice for top architects and developers in the country," said John Mixson, vice president of sales and marketing.

The HPDs cover all product brands and 40 products. They include: Gold Bond Brand; Fire-Shield Type X; Fire-Shield Type C; XP Fire-Shield Type X; XP Fire-Shield Type C; High Strength Fire-Shield LITE; High Strength Fire-Shield LITE 30; SoundBreak XP Fire-Shield; eXP Interior Extreme; eXP Tile Backer; eXP Sheathing; eXP Shaftliner; DEXcell Brand Glass Mat Roof Board; DEXcell Brand Cement Board; and PermaBase Brand Cement Board.

Saudi Arabia: National Gypsum has reported that net profit for the fourth quarter of 2015 fell by 66% to US$282,000 from US$828,000in the same period in 2014. Operational profit fell to US$773,000 from US$1.27m.

Net profit for the year in 2015 remained static at US$5.78m compared to US$5.79m in 2014. Operational profit fell by 36% year-on-year to US$3.47m from US$5.41m.

US: Workers have been constructing a new facility to process by-products from FirstEnergy Corp's coal-fired power plant as the company makes a major change in how it disposes of industrial waste. Some of the plant's by-product is already sold and reused by National Gypsum, which takes about 500,000t/yr of synthetic gypsum for wallboard production.

The Ohio-based company plans to have the project ready for use at the end of 2016, when the company has agreed to halt the use of the residual waste impoundment known as Little Blue Run, which many neighbours have alleged has leaked hazardous waste and released noxious odours.

When the Bruce Mansfield plant removes sulphur dioxide from its emissions, it creates coal combustion by-products. FirstEnergy has been depositing much of the by-product in Little Blue Run, West Virginia. However, the state Department of Environmental Protection sued in 2012 over leaks and threats to groundwater. As part of a settlement, the company agreed to no longer use Little Blue Run by the end of 2016.

James Fitzgerald, Manager of major projects, said that new disposal sites for materials treated by the new dewatering facility will be different. "That landfill will have different regulations, different requirements. There are liners associated with it. So it's a whole different process," said Fitzgerald.

With the new facility, FirstEnergy will process 2.5 – 3.5Mt/yr of by-product, which consists of fly ash, sulphur and lime. It will be processed at the new facility, where water will be removed. The water from the process will then be reused at the plant, said Jim Graf, Director of the Bruce Mansfield plant. Once the new facility processes the by-product, it will be moved by barge to another site. The new project will cost more than US$200m.

US: The Oxford Fire Department responded to a minor fire on 22 September 2015 at the National Gypsum Company in Oxford, Michigan.

A call first came in about a fire in the plant's paper bale room around 11:15am from an employee at the plant, according to Oxford fire chief Gary Sparks. Firefighters were on scene within three minutes of the call, extinguished the fire and left the scene by 12:40, said Sparks.

It is unclear how the fire started, but the sprinkler system held the flames in check until responders arrived on the scene. "There was minimal damage," said Sparks. "The majority of it was to the paper bales, but there was some smoke damage in the office area." There were no injuries reported during the incident and the plant was expected to be up and running before the day ended.

Canada: National Gypsum Canada Ltd is looking to make what it calls 'the largest gypsum quarry in the world' even bigger. The quarry in Milford, Nova Scotia currently covers about 3.01km². The plan is to expand operations by 1.44km², 1.35km² of which would be used for mining activities.

"We want to ensure that we have an adequate gypsum supply and the market is better than it has been," said Nancy Spurlock, company spokeswoman. An increase in US housing starts of about 1m units in 2014, up 8% from 2013, continues to drive demand for wallboard products.

National Gypsum has registered its proposed mine extension project for environmental assessment with the province as required under the Environment Act. "The anticipated average production rate for the expanded mine facility will be at the 20-year average of 3.1Mt/yr, depending on market demand," said an environmental report prepared by Stantec Consulting Ltd for National Gypsum.

The Milford-area mine has produced more than 134Mt of gypsum since it opened in 1954. National Gypsum employs 60 people at the mine and more workers will be needed if mining operations and the volume of product pulled from the ground increases, according to Spurlock. The quarry, one of eight the company owns and its only one outside the US, would grow over the next 35 - 40 years, depending on market demand. "It's a long-term forecast, and we need to nail down the source of our gypsum, that's why we're doing it," said Spurlock.

The proposed extension area includes forest, wetland, clear-cuts and some agricultural land. Six wetland areas would be protected by an ecological buffer zone. If the project is given the go-ahead, National Gypsum would open up areas as needed. The minister has until 9 April 2015 to grant a conditional approval of the environmental assessment.