Gypsum industry news

US: ABC Supply and USG have entered into a agreement in which ABC Supply will acquire USG's building product distribution business, L&W Supply Corporation for US$670m. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed before the end of 2016.

"As a world-class distributor of interior building materials, L&W reinforces ABC's leadership position in building materials distribution, and helps set the stage for our next phase of growth," said Keith Rozolis, ABC Supply's President and Chief Executive Officer.

Completion of the transaction will allow USG to reduce debt and achieve its target leverage ratio, accelerate high return investments in its Gypsum and Ceilings businesses through advanced manufacturing initiatives, and position the company to consider future capital returns to shareholders. The sale of L&W Supply is also expected to dampen USG's overall earnings cyclicality as well as provide opportunity for growth in the independent specialty dealer channel.

L&W Supply is one of the largest distributors of gypsum wallboard and suspended ceiling tiles in the US, serving its customers from 136 branches. ABC Supply is a wholesale distributor of roofing, siding, windows and gutter materials. The acquisition of L&W Supply will allow it to expand into the interior of the building through the sale of gypsum wallboard and suspended ceiling tiles and grid.

US: Arizona Instrument has released the Computrac Vapor Pro XL (VPXL), the latest in its line of moisture analysers. The Computrac Vapor Pro instrument line provides a moisture specific alternative to Karl Fischer titration without the use of chemical reagents. New features for the VPXL include an upgraded heater, compatibility with multiple sizes of sample vials, stepped temperature testing capabilities and a touch screen interface. Applications for the Computrac moisture analyser line include gypsum purity testing as well as uses in plastics, petroleum products, pharmaceuticals and chemical production.

US: Continental Building Products' (CBP) net sales have risen by 12.5% year-on-year to US$229m in the first half of 2016 from US$204m in the same period in 2015. Its net income rose to US$25.2m from US$1.89m. Sales volumes of gypsum wallboard rose by 4.2% to 59.7Mm² from 57.3Mm².

"For the second consecutive quarter, we experienced stronger demand in our markets east of the Mississippi, which generated a 13% increase in wallboard volume versus the prior year," said Jay Bachmann, the chief executive officer of CBP.

US: USG's net sales have risen by 5% year-on-year to US$1.97bn in the first half of 2016 from US$1.90bn in the same period in 2015. The company's net income rose by 37% to US$141m from US$103m. Net sales for its overall gypsum business rose by 6% to US$1.27bn from US$1.19bn. However, net sales for its gypsum business in Mexico and Latin America fell by 3% to US$93m in the first half of 2016 from US$94m in the same period of 2015.

"Our focus on operational execution in all of our businesses drove our improved second quarter results," said James S Metcalf, Chairman, President, and CEO of USG. "Expanding operating margins is a key priority for USG, and we delivered margin expansion in all of our businesses in the second quarter."

US: Eagle Materials' sales revenue from gypsum wallboard has fallen slightly by 1.6% year-on-year to US$113m in the first quarter of its 2017 financial year that ended on 30 June 2016 from US$115m in the same period in 2015. Overall company revenue rose by 1.5% to US$298m from US$285m. Gypsum wallboard sales volumes rose by 2% to 54Mm² from 53Mm².

US: The Gypsum Association has been designated a Preferred Provider under the International Code Council (ICC) Preferred Provider Program (PPP). The Gypsum Association already is an American Institute of Architects (AIA) Continuing Education System (CES) Provider.

The ICC PPP provides building code officials and others with education related to codes, standards, and guidelines, as well as building construction materials, products and methods. The Gypsum Association intends to provide online education for its GA-600 Fire Resistance Design Manual, a publication offering fire resistive designs referenced by model building codes.

Canada: The Canada Border Services Agency (CBSA) has launched an investigation in whether gypsum wallboard from the US is being sold at 'unfair' prices in British Columbia, Alberta, Saskatchewan and Manitoba, as well as the Yukon and Northwest Territories. The investigation is the result of a complaint filed by CertainTeed Gypsum Canada. The complainant alleges that jobs, profits and productivity in Canada are being harmed by the sale of these goods.

The CBSA and the Canadian International Trade Tribunal (CITT) will both play a role in the investigation. The CITT will begin a preliminary inquiry to determine whether the imports are harming the Canadian producer and will issue a decision by 8 August 2016. At the same time, the CBSA will investigate whether the imports are being sold in Canada at unfair prices, and will make a preliminary decision by 6 September 2016.

A national anti-dumping investigation into gypsum wallboard from the US was previously conducted by the CITT in 1992.

US: Owens Corning has dedicated a new plant for manufacturing glass fibre non-wovens in Gastonia, North Carolina. The plant will produce a glass veil that can be used to make gypsum wallboard, carpet and ceiling tiles and vinyl flooring and can be used in automotive applications. The unit is also capable of producing Sustaina veil products that use a bio-based, formaldehyde-free binder system.

"Our investment in Gastonia encompasses the most advanced glass veil manufacturing technologies – with the ability to make a broad range of products for diverse customers – a sustainable footprint and a highly trained workforce," said Suman Raha, general manager of Non-Wovens - North America, Owens Corning.

US: USG has sold its gypsum mine in Empire, Nevada to the Empire Mining Company for US$10.3m. The Empire Mining Company purchased the mine and associated land on 27 May 2016, according to land records accessed by the Reno Gazette-Journal. USG shut the mine in late 2010 and the locale has since been described as a 'ghost town'. USG has not commented on the sale.

US: Eagle Materials has reported that its revenue rose by 7% year-on-year to US$1.14bn in the financial year that ended on 31 March 2016 from US$1.07bn in the previous period. Its earnings fell by 18% to US$153m from US$187m.

By business sector its gypsum wallboard operating earnings rose by 9% to US$159m from US$146m. Its wallboard sales volumes rose by 8% to 222Mm² from 205Mm².