Gypsum industry news

US: CatchMark Timber Trust and its Triple T joint venture have amended their wood supply agreement with Georgia-Pacific to achieve “market-based pricing on timber sales.” Under the amended deal, Triple T also will be able to increase reimbursement for extended haul distances, sell timber to other third parties and expand its ability to sell large timberland parcels to third party buyers. The supply agreement between Triple T and Georgia-Pacific has also been extended by two years from 2029 to 2031, with optimised harvest volume obligations to enhance and preserve long-term asset value. Triple T has paid Georgia-Pacific US$145m to make these changes.

CatchMark invests in 1.1 million acres of East Texas timberlands through Triple T and acts as the general partner of the venture on behalf of a consortium of institutional investors. Georgia-Pacific produces paper-based consumer products and building materials, including gypsum wallboard.

France: Saint-Gobain says that its overall group activity fell to 60% of 2019 levels in April 2020 due to the effects of the coronavirus pandemic. Since then its level of activity surpassed 80% ‘at comparable working days, with large variations by market and country,’ according to Regulatory News Service. The group expects a ‘challenging’ second quarter 2020 before a recovery in the second half of the year. It continues to preserve cash and reduce costs.

In Europe the group reported that, by the end of May 2020, Nordic countries had almost reached 2019 levels. Germany and Eastern Europe were still seeing activity levels below those of 2019. The UK has seen activity levels progress by around 10%/week since a low point in mid-April 2020 when activity were at a ‘virtual standstill’, reaching around 70% of 2019 levels in the last week of May 2020.

In the group’s Middle East & Africa region activity levels surpassed 50% of 2019 levels since a low in mid-April 2020. In France, activity in distribution came close to the 2019 level in the last week of May 2020, but with big differences by region and brand. Spain and Italy are picking up gradually, but remain below the average level of the region. The Netherlands remains close to a normal level of activity, while the Middle East and Africa remain impacted to varying degrees.

North America has reported a ‘contrasting situation state by state,’ but has shown improvement since the low point of mid-April 2020. Activity in May 2020 moved closer to 2019 levels due to ‘significant’ volumes in exterior solutions and a rebound in gypsum volumes. In Latin America, despite the health situation remaining difficult, activity is picking up week after week, from 40% in mid-April 2020 to around 80% in May 2020 with a ramp-up in Brazil.

In Asia-Pacific sales have now reached 2019 levels following the gradual restart of all its production sites in China in March 2020. India remains ‘severely’ disrupted with the restart dependent on the relaxing of confinement measures. The situation is varied across South-East Asia with a rebound in Vietnam where activity has surpassed 2019 levels, but disruptions still relatively significant in Thailand and neighbouring countries.

US: The Gypsum Association has elected Gregory McCown as the chair of its board of directors for 2020 – 2021. McCown is the Regional Manufacturing Manager – Eastern US for CertainTeed Gypsum. Other appointments include National Gypsum’s Craig Robertson as vice-chair, Pabco Gypsum’s Emil Kopilovich, as treasurer and the Gypsum Association's Stephen H Meima continues as the secretary. USG’s Albert R Zucco is the past chair of the board. All terms are for one year and are effective from 1 May 2020.

US: Colin Hanson, one of the founders of gypsum wallboard moisture measurement expert Sensortech Systems, retired from his position of president of the company on 14 May 2020. A native of Southport in the north west of England, Colin Hanson established Sensortech Systems in Oxnard, California, along with Logan Mosteller and Bob Blankenship, in 1983. He had previously worked for leading moisture measurement equipment manufacturers in the UK and US and in the oil exploration sector in the UK.

Hanson was the pioneering developer behind Sensortech’s resonant frequency (RF) radio approach to moisture measurement. This offered higher accuracy, and hence control, to wallboard manufacturers, as it was more directly dependent on moisture content than the established techniques based on power-loss measurements. The RF approach has since risen to become the dominant approach to wallboard moisture measurement worldwide.

The company’s first product based on the RF approach was the ST-1100 moisture sensor range, which was replaced by the ST-2200 in 1992 and, subsequently, the ST-3300 range in 2018. Sensortech also produces the Instantaneous Moisture Profiling System (IMPS), which analyses moisture across the full width of the board, and has an extensive offering of near infra-red sensors. It most recently developed the Kiln Jam Detector for use inside board dryers.

As Sensortech grew in the 1980s and 1990s, Hanson took over the shareholdings of the other two directors. He became sole owner of the company in 1996. He sold Sensortech Systems to KPM Analytics on 14 May 2019, remaining as president until his retirement a year later. He will remain on hand in an advisory capacity and will continue to offer his insights and expertise to the company, with a focus on the development of existing and new products.

Speaking upon the sale of Sensortech to KPM, Hanson said, “There is a depth of talent within Sensortech, supplemented by KPM, that will provide a seamless transition to a successful future. KPM is putting resources into growing Sensortech, which is fantastic. The company has a development queue representing years of research but there are opportunities to accelerate that with KPM.”

Ron Geis, KPM Analytics’ President, has taken over the role of president of Sensortech Systems.

US: Gypsum wallboard distributor Foundation Building Materials reports that sales of wallboard fell slightly to US$202m in the first quarter of 2020. This was attributed to disruption caused by the coronavirus outbreak. Overall its sales across all business lines rose, in part due to an additional business day in the reporting quarter compared to the same period in 2019. It noted lower sales growth in states with stronger lockdown measures, including Washington, California, Michigan, New Jersey and Pennsylvania. Overall sales in April 2020 were reported as being 20% down year-on-year.

US: The Gypsum Association (GA) has released a revised and updated environmental product declaration (EPD) for 5/8” (1.5875cm) type X North American gypsum boards. Following the standards set in the association’s recently revised product category rules (PCR) for North American gypsum panel products, the EPD provides environmental performance information addressing energy consumption, water consumption, global warming, waste, air emissions and other metrics related to production.

“The Gypsum Association has an ongoing commitment to environmental stewardship. The development and release of this new ISO 21930 compliant, Type III, cradle-to-shipping gate EPD, demonstrates our member companies’ efforts to transparently report environmental impacts as a means of contributing to sustainable design and construction,” said Steve Meima, Leadership in Energy and Environmental Design (LEED) Green Association, executive director of the GA.

Type X gypsum board is commonly installed in commercial, institutional and multifamily/mixed-use facilities. Where fire resistance ratings are required, type X gypsum board is typically specified. The GA has also produced an EPD for glass mat gypsum panel products that will be updated in 2021 under the new PCR.

US: Johns Manville’s (JM) filtration products plant in Richland, Mississippi started production of nonwoven filtration media for use in face masks in April 2020. JM’s Engineered Products business decided to build on its existing capabilities and help meet market demand due to shortages in the US and Europe in relation to the coronavirus pandemic.

“Johns Manville is in a unique position to serve a market that is fulfilling a great need across the world,” said Mary Rhinehart, president and chief executive officer (CEO) of JM. “Our high-performance nonwoven material is designed to provide high levels of filtration for various types of face masks. We are proud of our teams in Richland and throughout JM for finding new ways to support the communities and people who are on the front lines of this global crisis.”

JM says its media meets or exceeds Level 1 BFE 95% (Bacterial Filtration Efficiency) and VFE (Viral Filtration Efficiency) requirements. These results were verified by a Food and Drug Administration (FDA) registered laboratory.

US: Eagle Materials Inc. has announced that Mary Ricciardello has been appointed to the company’s Board of Directors. Ricciardello also serves as a director on the boards of Devon Energy and Noble Corporation, serving as the Audit Committee Chairperson on both boards. Her previous board service includes seven years on the board of US Concrete. Ricciardello enjoyed a distinguished career at Reliant Energy, where she served in key roles, including that of Chief Accounting Officer.

Mike Nicolais, Eagle’s Board chair, commented, “We are extremely pleased to have Mary join our Board. Mary is a proven leader and will be a great complement to the strong leaders on our board today. The addition of Mary to the board is also timely in that it provides additional flexibility in light of prospective Board needs as we plan for the separation of Eagle Materials into two publicly traded companies.”

US: France-based Saint-Gobain subsidiary has reached out to ‘federal, state and local government to understand where and how’ it can redeploy ‘technologies, manufacturing operations and human expertise to help them address the covid-19 crisis.’ It also extended the offer of assistance to its partners, suppliers and customers ‘in their own efforts to help.’

US: GMS has reported a net profit over the three months to 31 January 2020, the third quarter of its 2020 fiscal year, of US$10.9m, up by 87% from US$5.83m in the corresponding quarter of its 2019 fiscal year. Its net sales over the period rose by 5.2% year-on-year to US$761m from US$724m. The company’s gypsum wallboard sales reached US$314m, up by 5.7% from US$297m in the third quarter of the 2019 fiscal year.