Gypsum industry news

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.

US: Washington-based Summit Drywall has been ordered to pay US$550,000 in overtime, back wages and damages to nearly 400 workers to settle a lawsuit that was filed by the US Labour Department.

The Labour Department said that it had obtained a federal court consent judgement ordering Summit Drywall and its owner to pay the money to current and former employees. The department said that the company would pay US$275,000 in back wages and another US$275,000 in damages to workers who were illegally denied overtime from October 2009 to April 2013.

Around 380 workers will receive money. Investigators found that the workers were not compensated for all the hours they had worked.

US: USG Corporation has reported fourth quarter 2013 net sales of US$915m, up by 12% from fourth quarter 2012 net sales of US$815m. USG's fourth quarter 2013 operating profit was US$60m compared to an US$8m operating loss in the fourth quarter of 2012. USG's fourth quarter 2013 net loss was US$3m, compared to a US$13m net loss in the same period of 2012.

USG's adjusted net income was US$22m in the fourth quarter of 2013 compared to an adjusted net loss of US$52m in the fourth quarter of 2012. The adjusted net loss in the fourth quarter of 2013 excluded, among other items, a US$16m pension settlement charge related to a lump-sum payout to terminated employees that lowered the pension obligation by approximately US$80m. The adjusted net loss in the fourth quarter of 2012 excluded, among other items, a US$55m gain from the sale of the corporation's European operations.

"We're pleased to have delivered a fourth consecutive quarter of positive operating results with improved performances in all major businesses," said James S Metcalf, chairman, president and CEO. "Our plan to win is working and we expect to improve upon our results as we capitalise on the increasing opportunity in our end markets."

USG recorded full year 2013 net sales of US$3.6bn, an operating profit of US$258m and a net income of US$47m, with an adjusted net income of US$73m. For the full year of 2012, net sales were US$3.2bn, operating profit was US$73m and net loss was US$126m, with an adjusted net loss of US$124m.

"2013 was a foundational year for USG, however our work is not done," Metcalf said. "We remain committed to keeping our breakeven low and delivering our balance sheet, while seeking organic growth opportunities as we build the USG of the future."

Australia/US: USG Corporation has announced that it and Boral Limited continue to progress toward completion of their 50/50 strategic joint venture. While completion was originally anticipated to occur by 31 January 2014, it is now expected to occur on or before 28 February 2014, due to additional time being necessary to obtain regulatory approvals.