Gypsum industry news

US: Oklahoma-based ACG Materials has appointed Paul Harrington as its new CEO. ACG Materials is a national provider of minerals, aggregates and related downstream products including gypsum, limestone, sand, gravel and anhydrite.

Paul Harrington joined ACG Materials in July 2014 as president and COO. Prior to July 2014, Harrington was executive vice president at Rain for Rent. Before that, he spent 24 years working for Holcim.

US: Continental Building Products has announced the appointment of Dennis Schemm as chief financial officer, effective from 11 May 2015.

"We are excited to welcome Schemm to our leadership team," said Jay Bachmann, Continental's CEO. "He has a proven history of experience, with more than 20 years in finance, including 16 years in senior management roles at publicly-traded industrial companies. His extensive and broad leadership capabilities will be instrumental to supporting our efforts as we further strengthen our low-cost position and generate additional cash flow as our end markets improve."

Schemm most recently served from 2013 to 2015 as vice president of global finance for Armstrong Flooring, a division of Armstrong Worldwide, where he oversaw the division's financial and accounting functions. From 2011 to 2013, Schemm served as director of global financial planning and analysis at Gilbarco Veeder Root, a Danaher Corporation, where he was responsible for operational and strategic planning and provided financial leadership for global operations and research and development.

US: Eagle Materials Inc has reported its financial results for its 2015 fiscal year that ended on 31 March 2015.

Earnings before interest and income taxes increased by 32% year-on-year to US$265m, reflecting improved sales volumes across nearly all business lines, with cement sales volumes setting an annual record of 4.8Mt. Net sales prices also strengthened across all businesses. Fourth quarter earnings before interest and income taxes increased by 31% to US$44.4m, as fourth quarter sales volumes improved across nearly all businesses, reflecting improving construction fundamentals in the US.

On 3 March 2015, Eagle entered into a definitive agreement with Holcim (US) to purchase its 600,000t/yr granulated ground blast furnace slag (GGBFS) plant in South Chicago. The purchase price of US$30m is subject to customary post-closing adjustments and will be funded from operating cashflow. The transaction is expected to close in the second quarter of its 2016 fiscal year and is conditioned upon the closing of the Lafarge-Holcim global merger.

Operating earnings from gypsum wallboard and paperboard grew by 28% year-on-year to US$177m in the 2015 financial year. Revenues from gypsum wallboard and paperboard grew by 13% year-on-year to US$525m. Gypsum wallboard and paperboard fourth quarter operating earnings grew by 32% year-on-year to US$38.3m. The increase in operating earnings was primarily due to higher net wallboard and paperboard sales prices and higher wallboard sales volumes. Gypsum wallboard and paperboard revenues for the fourth quarter grew by 5% year-on-year to US$112m. The average gypsum wallboard net sales price for the quarter grew by 4% year-on-year to US$168.97/Mft². Gypsum wallboard sales volumes grew by 5% year-on-year to 464Mft² in the fourth quarter.

US: Wallboard recycler USA Gypsum has opened its US$3m wallboard recycling plant and corporate headquarters in the West Cocalico Township, Pennsylvania. The company said that the new buildings and equipment will produce better quality products more efficiently and will help USA Gypsum to divert even more wallboard waste from landfills.

The recycling plant also includes renovated buildings for packaging, storage and offices. In the past 10 years, USA Gypsum has diverted more than 225,000t of wallboard from landfills, converting it to beneficial use by farmers in the form of gypsum fertiliser, soil conditioners and amendments and gypsum animal bedding. In spite of this growth, USA Gypsum has estimated that less than 10% of wallboard scraps generated in Pennsylvania are recycled. USA Gypsum ships its gypsum products across the US and Canada.

US: Gypsum Management and Supply Inc (GMS) has launched its newly-redesigned website. The company has said that new website was established to 'capture the essence of the brand today,' as well as to digitally facilitate its core competencies in servicing customers and connecting them to local markets.

"GMS has a long-standing commitment to offering customers a better experience," said Michelle Leader, marketing director of GMS. "Our goal continues to be to connect with our customers on a local level and provide the best possible service. This new website helps support this effort, but more importantly equips our customers for success on the job."

US: USG's sales for the first quarter of 2015 have risen by 7% year-on-year to US$909m. The company's operating profit rose by 15% to US$76m in the same period. The positive results were driven by its gypsum and ceilings divisions.

"USG is off to a great start in 2015, led by the performance of our US Gypsum and US Ceilings businesses... We generated operating margin improvement in these businesses by achieving price increases, focusing on manufacturing cost control, and tailoring our spending on investments in these businesses," said James S Metcalf, Chairman, President, and CEO.

USG also announced that it has entered into agreements to sell the two ships in its non-core shipping business, Gypsum Transportation Limited (GTL), for US$42m. The sales of the ships are expected to close in April 2015.

US: Al Mueller has joined the PABCO Building Products LLC board of managers with effect from 1 April 2015. Following Mueller's retirement as PABCO's president, he served on the Basalite Concrete Products LLC board of managers and will continue to do so going forward. Mueller gained a wealth of experience in the gypsum, roofing and paper industries, while providing leadership during his tenure as PABCO's president. His knowledge and expertise of both the industry and the operations will be a very valuable addition to the board.

US: Gypsum Management and Supply Inc (GMS) has made a strategic entrance into the California and Hawaii markets by acquiring San Diego-based J&B Materials Inc and its affiliated Hawaiian operation, Pono Building Materials LLC.

"We are pleased to bring J&B Materials and Pono Building Materials into the GMS family," said Mike Callahan, president of GMS. "Their commitment to delivering exceptional service, knowledgeable personnel and an expansive product suite with a focus on safety fits well within our culture. This partnership provides us with an excellent opportunity to expand our service area into California and Hawaii while enhancing our West Coast coverage."

J&B Materials has locations in El Cajon, Escondido, Riverside and El Centro in California and one in Honolulu, Hawaii. J&B offers a wide variety of building products including wallboard, stucco, lath and plaster and fasteners among others.

Don Taylor, the GMS vice president of operations for the western region, sees the acquisition as a key step in growing the GMS footprint in California and the whole southwestern US. "We feel that J&B, with its exceptional customer relationships and strong brand name, will be a key component to further expansion. With Bob and Jeff Young joining our team, this will give us the additional management depth to continue our growth," said Taylor.

US: Transnational Group Inc has exchanged executed Letters of Intent with Nevada Outdoor School to secure rights to mine gypsum on several claims located in southern Nevada that comprise Mount Vista Gypsum Property. Transnational Group expects the project to yield over 600,000t/yr of gypsum and could begin producing during the third quarter of 2015.

US: Gypsum Management and Supply (GMS) has signed an agreement to acquire Ohio Valley Building Products based in Wheeling, West Virginia. Ohio Valley Building Products, which supplies wallboard, ceiling products and insulation services, will be the 34th wholly-owned subsidiary of GMS. The deal marks the strategic entrance of GMS into West Virginia, western Pennsylvania and eastern Ohio.

"We are excited about the addition of Ohio Valley to the GMS family," said Mike Anderson, vice president of the northeast region. "The greater Pittsburgh/Ohio Valley market has been of key interest to us for years. Eric Bayer and his team will be key to us growing in this market in the future."

"I am very excited to join with GMS," said Eric Bayer, president and owner of Ohio Valley Building Products. "We pride ourselves on providing excellent customer service and that fits well with GMS. We cannot wait to get started."