Gypsum industry news

US: Saint-Gobain has appointed Mark Rayfield as the president and chief executive officer (CEO) of its subsidiary CertainTeed. He will also serve as the Region CEO of Saint-Gobain Construction Products for North America.

Rayfield has worked as the CEO of Saint-Gobain Building Distribution United Kingdom and Ireland since 2013. He started his career with Saint-Gobain in 1999 in a sales role within Abrasives North America, before assuming the role of Vice President of Saint-Gobain Abrasives North America from 2007 to 2011. Prior to moving to the UK, Rayfield was President of the CertainTeed Siding business from 2011 - 2013.

He succeeds Benoit Bazin, who has served as president and CEO of CertainTeed since January 2017. Bazin will continue to serve as president and CEO, Saint-Gobain’s Construction Products Sector and Senior Vice President, Saint-Gobain Corporation.

US: USG’s Washingtonville gypsum wallboard plant in Pennsylvania plans to spend US$8m towards automation upgrades in 2017. Plant manager Nicholas Latkovic told the Daily Item newspaper that the company also expects to spend US$8m or higher in 2018. The upgrade will include 20 automated guided vehicles and automated board handling equipment to speed up the production process by 20%. The investment is also expected to add four or five people to the total workforce of 125.

US: Continental Building Products' Palatka wallboard plant in Florida has endured Hurricane Irma without any serious damage to the facility. The site is about 30 miles inland of St Augustine and it employs over 125 workers. It closed for the storm to allow employees to prepare themselves and their families. However, it didn't lose power and 'sustained essentially no known damage'. Continental Building Products has announced it will donate US$25,000 to the American Red Cross to support the relief effort.

US: Gypsum Management & Supply, Inc. (GMS), a distributor of gypsum wallboard, suspended ceiling systems and interior construction products, has acquired ASI Building Products, LLC, a provider of ceilings and building products. Both the companies are based in the US. Following the transaction, ASI Building Products majority owner and industry veteran Dave Mayer, along with the entire ASI team, will continue on with GMS going forward.

The acquisition will allow GMS to expand its presence in Michigan, with a portfolio of quality products and reinforces its commitment to customer service.

US: ACG Materials has acquired Diamond Gypsum, a miner of gypsum products that are sold into various oil and gas, infrastructure and agricultural applications. The company owns and operates a quarry in central Oklahoma. No value for the transaction has been disclosed.

"We are excited to further strengthen our position as the leading industrial mineral and aggregate producer in the Midwest," said Paul Harrington, Chief Executive Officer (CEO) of ACG Materials. He added that the acquisition expands ACG Materials' presence in the Sooner Trend Anadarko Basin Canadian and Kingfisher Counties (STACK) shale basin.

ACG Materials, a subsidiary of HIG Capital, is based in Norman, Oklahoma. It mines, mills, processes, and distributes industrial minerals and aggregates including gypsum, anhydrite, limestone, sand, gravel and downstream food, pharmaceutical and plaster products.

US: Eagle Materials' revenue has risen by 23% year-on-year to US$366.1m in the first quarter of its 2018 fiscal year, which runs 1 April – 30 June 2017. Its first quarter earnings before interest and income taxes increased by 22%, reflecting improved sales volumes and net sales prices across nearly all businesses.

Eagle Materials' Gypsum Wallboard and Paperboard revenues for the first quarter totalled US$154m, 9% higher year-on-year. The average gypsum wallboard net sales price in the quarter rose by 10% to US$1711/Mm² (US$159/MSF). Gypsum wallboard sales volumes rose by 11% to 60Mm² (654MMSF). Paperboard sales volumes fell by 5% to 79,000t, reflecting the timing of third-party purchases. The average paperboard net sales price rose by 10% to US$550/t.

Gypsum wallboard and paperboard reported first quarter operating earnings fell by 4% to US$48.8m. The earnings decline primarily reflected increased operating costs at Eagle Materials' paper mill due to the timing of its annual maintenance outage and higher recycled fibre costs, partially offset by improved wallboard sales volumes and sales prices.

US: USG Corporation has reported its financial results for the second quarter of 2017, showing a double digit increase in wallboard sales despite a competitive environment. "Our US wallboard shipments in the second quarter of 2017 were up double-digits and were at the highest levels we have seen since 2008," said Jennifer F Scanlon, President and CEO. "However, rising commodity costs and a competitive pricing environment weighed on our operating margins and second quarter performance. We are taking actions to address inflation and will continue our strategic investment in advanced manufacturing to deliver profitable growth."

On a consolidated basis in the second quarter of 2017, USG's net sales were US$811m, compared to US$769m in the second quarter of 2016. Operating profit decreased to US$96m from US$122m, while adjusted operating profit decreased to US$117m from US$127m in the second quarter of 2017 compared to the second quarter of 2016. USG generated US$36m compared to US$74m in the second quarter of 2016.

The corporation's gypsum segment generated US$90m of operating profit in the second quarter of 2017. On an adjusted basis, operating profit of US$95m in the gypsum segment decreased by US$6m compared to the second quarter of 2016. US wallboard volumes increased by 10% in the second quarter of 2017. US wallboard prices decreased by approximately 1% due primarily to competitive pricing pressures and the impact of transitioning certain wallboard volumes from wholly-owned distribution at L&W Supply, which was sold in 2016, to independent distribution. USG's US wallboard production costs increased by US$8m due almost exclusively to rising waste paper costs.

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: Taishan Gypsum and its owner China National Building Material Company (CNBM) say they have settled with Lennar Homes, LLC and US Home Corporation in one of its lawsuits about alleged defective gypsum wallboard. Fellow subsidiary Beijing New Building Material (BNBM) and Taishan Gypsum have agreed to pay the companies concerned US$0.5m and US$6m respectively in instalments by 31 July 2017. In return the plaintiffs have agreed to drop all claims and allegations within three days of receipt of the payment.

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.