Gypsum industry news

US: Paul Johnson Drywall Inc., an Arizona-based wallboard contractor, has ended its relationship with a labour contractor that misclassified workers as independent contractors, according to the US Department of Labour (DOL). Paul Johnson Drywall agreed to pay US$556,000 in overtime, back wages and liquidated damages to at least 445 current and former employees. It will also take steps to ensure misclassification does not occur again and will pay US$44,000 in civil penalties.

Paul Johnson Drywall had entered into a contract with Arizona Tract to supply wallboard labour. However, Arizona Tract misclassified workers as 'member/owners' and violated overtime and record-keeping provisions of the Fair Labor Standards Act (FLSA), according to the DOL. Paul Johnson Drywall also, prior to being solicited by Arizona Tract, failed to pay proper overtime to employees who were paid on a piece-rate basis. Investigators also found that Paul Johnson Drywall failed to keep complete and accurate records.

The company agreed to take steps to ensure its workers are properly classified and paid as employees and to improve compliance in the construction industry. Paul Johnson Drywall will hire a third-party monitor to ensure compliance and require any wallboard subcontractors to conduct regular training of supervisors and employees regarding the requirements under the FLSA. Paul Johnson Drywall has announced a classification initiative that includes reactivating 1325 workers as W-2 employees and hiring 627 new employees as a first step in its FLSA compliance programme, which was developed in conjunction with the DOL.

"We pride ourselves on having the most professional crews in the state and welcomed the opportunity to evaluate employment practices with the DOL," said Cole Johnson, president of Paul Johnson Drywall. "Our crews allow us to deliver clients unparalleled on-time delivery in the safest manner and as a result of these high expectations, we consistently pay our crews the highest wages. We're excited to be taking our business, as well as our trade and related industry, to the next level."

US: Eagle Materials Inc has reported financial results for fiscal year 2014, which ended on 31 March 2014. Company revenues were up by 40% year-on-year to US$898.4m and net earnings grew by 50% year-on-year to US$200m, reflecting improved sales volumes and stronger sales prices across all business lines. Annual revenue and earnings improvement also reflects the acquisition of assets, including cement plants in Missouri and Oklahoma on 30 November 2012.

Fiscal 2014 operating earnings from gypsum wallboard and paperboard grew by 46% year-on-year to US$138.5m. Revenues from gypsum wallboard and paperboard were up by 22% year-on-year at US$465.1m.

Gypsum wallboard and paperboard fourth quarter operating earnings were US$29.0m, up by 9% from the same quarter of fiscal 2013. The increase in operating earnings was due to higher wallboard sales prices and volumes, which were offset by US$1.5m maintenance costs, US$1.3m legal costs and US$0.9m natural gas costs, all of which grew compared with fiscal 2013. Gypsum wallboard and paperboard revenues for the fourth quarter grew by 11% year-on-year to US$106.3m. Wallboard sales volumes were up by 2% year-on-year to 442Mft² and paperboard sales volumes for the quarter grew by 4% year-on-year to 59,000t.

US: Continental Building Products, a manufacturer of gypsum wallboard and complementary finishing products, has announced its results for the first quarter of 2014, which ended on 31 March 2014.

Net sales increased by 4.2% to US$87.0m in the first quarter of 2014, up from US$83.5m for the same period of 2013. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) were US$20.2m, unchanged from 2013, operating income was US$6.3m, down from US$10.0m in 2013 and adjusted net loss was US$0.6m, compared to a net income of US$9.8m in 2013. Wallboard sales volumes were flat at 438Mft² due to adverse weather conditions. Lower wallboard sales volumes in Canada offset a 2.2% increase in US sales volumes.

"We achieved strong price gains in the first quarter of 2014 amid flat volumes, which were unfavourably impacted by adverse weather conditions in many of our markets in the eastern US," said Ike Preston, Continental's CEO. "Our adjusted EBITDA was stable compared to a year ago as our improvement in sales was offset primarily by higher energy costs. As we move forward in 2014, we believe the long-term recovery in housing markets remains in place and that we are well positioned to grow our business and leverage our low cost as demand improves."

US: United States Gypsum (USG) has announced that it has no plans to build a wallboard plant in Crystal River, Florida.

Although the company has received approval from the Southwest Florida Water Management District for a 1.750ML/day general water use permit, USG officials said that the company doesn't need the plant right now. However, officials said that USG is keeping its options open for the future.

Read the original story here: USG gets water permit for wallboard plant

US: United States Gypsum (USG) has received a 1.750ML/day water use permit for a planned wallboard and joint compound (spackle) manufacturing plant near the Duke Energy complex in the city of Crystal River, Florida.

In 2011 USG bought 0.716km² of land near the Progress Energy Florida power plant, now Duke Energy, to warehouse synthetic gypsum that is created by scrubbers at the coal-burning plants. USG takes all of the gypsum produced at the plant and moves it to the site by conveyor belt.

USG now plans to construct a gypsum processing facility at the site. Part of the water permit detailed a request for two 30.5cm wells to be located on the plant site, to which water will be piped. The plant will run six days a week, possibly seven during the peak building season.

Progressive Water Resources, which is handling the application process for USG, also investigated using reclaimed wastewater from Crystal River. However, that water has already been committed to Duke Energy.

US: USG Corp has reported a surge in profit for the first quarter of 2014, primarily on increased shipments and higher selling prices.

Chief executive officer James Metcalf said, "Despite the harsh winter conditions across most of the US during the first quarter of 2014, we delivered positive operating results and net income."

USG said that its US gypsum wallboard shipments rose to 1.15Bnft² (107Bnm²) from 1.11Bnft² (103Bnm²), while average wallboard prices climbed to US$166.66/1000ft² from US$153.07/1000ft² in 2013. Net sales for the first quarter of 2014 grew to US$850m, up from US$814m in the corresponding quarter of 2013. USG's first quarter profit surged to US$45m from US$2m.

US: Saint-Gobain's CertainTeed and home improvement retailer Lowe's have teamed up to offer the latest in backer board technology for easier, faster and more cost-effective tile installation projects.

Reinforced with embedded glass mats for added strength, moisture and mould resistance, Diamondback Tile Backer features a patent-pending polymer coating with a unique textured surface that creates a strong bond, reducing tile slippage during installation. Diamondback weighs 40% less than traditional cement boards and is much easier to handle, cut and install, saving installers valuable time. Highly mould resistant, CertainTeed's patented, proprietary Embedded Glass Reinforced Gypsum technology eliminates the need for an additional moisture barrier. Diamondback has also achieved GreenGuard Gold Certification.

"We are very excited about this partnership with Lowe's, which makes our innovative tile backer much more accessible to the homeowner DIY and contractor customer base," said Kelly Kuethe, marketing manager of CertainTeed.

US: Saint-Gobain has announced plans for a new, state-of-the-art North American corporate headquarters in Pennsylvania, USA.

Saint-Gobain said that the relocation will position it for greater growth and expansion in North America. The new headquarters will, for the first time, allow the company's local research team, which is currently based in Maryland, to be integrated with the company's operations team on one site. Saint-Gobain expects to accommodate future job growth and have the flexibility to relocate additional business units to the integrated site.

"This headquarters marks a step change in Saint-Gobain and CertainTeed's ability to serve our North American markets and it will be a shining example of a 21st century manufacturing business," said John Crowe, president and CEO of Saint-Gobain and CertainTeed Corporations. "With the building industry continuing to rebound, we've seized the opportunity to create a focal point for innovative design and development on the Eastern Seaboard, a place where our businesses and employees can continue to grow in a fully integrated, modern space that promotes collaboration across our business units, while offering significant room for future expansion."

By leveraging the full range of Saint-Gobain's portfolio of sustainable products and technologies, the headquarters is expected to achieve the US Green Building Council's LEED® Certification. The goal is to create a workplace that is energy-efficient, has superior air-quality and moisture management and makes a material difference in the comfort and health of employees.

USA: A new study highlights the top reasons that crop growers apply gypsum to cropland. The research cites increased yields, valuable sulphur fertility and soil quality improvements as key benefits of gypsum use, contributing to positive financial returns. The study involved an extensive review of published scientific literature, in-depth interviews with several long-time gypsum users and a survey of US farmers.

"On average, gypsum users received US$1.68 in return for every US$1 invested in gypsum. In addition, gypsum significantly improved the productivity of their soil," said Marvin Batte, professor emeritus of The Ohio State University. "Many gypsum users experienced even higher returns. Plus, there were significant environmental benefits as well."

"Returns were highest for alfalfa where users experienced dramatic increases in yield," said Batte. "In alfalfa, returns per dollar of gypsum cost were often 5:1 or higher. In corn, returns were 2:1 or higher. Alfalfa is a crop with a high sulphur requirement and gypsum supplies sulphur in the sulphate form, which is readily available to plants, unlike elemental sulphur that must be converted to a usable form," said Ron Chamberlain, lead agronomist for Gypsoil. The value of sulphur in gypsum is more than US$16/acre (24281m²) for a 6t alfalfa yield and more than US$5/acre for a 200-bushel corn crop. Producers also found that gypsum improved the effectiveness and efficiency of other plant nutrients, including nitrogen, phosphorus and potassium.

While increased yield and improved fertility were among the easiest benefits to measure, improved soil quality was viewed by many, especially long-time gypsum users, as the most important benefit. The most valuable soil improvement benefits included improved plant rooting, improved seedling emergence, increased soil water retention, reduced runoff and improved absorption of nutrients. Enhanced soil biological activity was also noted.

US/Australia: The Commission of New Zealand has granted clearance to USG Corporation and Boral Limited to enter into a joint venture.

The proposed joint venture relates to the two parties' operations in Asia, India, the Middle East and Australasia for the supply of plasterboard, ceiling tiles and ancillary building products such as metal studs and tracks, metal ceiling grids and metal ceiling battens.

The Commission found no significant overlap between USG and Boral in the plasterboard and ceiling tile markets and therefore focused its investigation on the supply of metal building products because the proposed joint venture would give USG Corporation an interest in Rondo Building Services Pty Ltd. At present, both USG and Rondo supply a range of metal building products in New Zealand.

The Commission was satisfied that the proposed joint venture will not have, or would not be likely to have, the effect of substantially lessening competition in separate markets for the supply of metal studs and tracks, metal ceiling battens and metal ceiling grid.

"In all three of these markets, the proposed joint venture would face competition from a number of different suppliers including both domestic manufacturers and importers," said Commerce Commission chairman Mark Berry.