Gypsum industry news

US: The Gypsum Association has released GA-227-13, 'Recommendations for the Prevention of Ceiling Cracking', a publication outlining methods to mitigate cracking in large-span wallboard ceilings due to fluctuations in temperature and humidity.

GA-227-13 explains that ceiling cracks can appear at gypsum board joints when the span between framing members approaches or exceeds 4.5m. The centreline cracks can occur because materials such as gypsum wallboard and wood framing shrink and expand at different rates due to periodical changes in moisture content and temperature. To address the issue, the document details how resilient channels can reduce the occurrence of cracking.

"The methods for the use of resilient channels described in this document have been shown to be very effective in preventing ceiling cracks due to swings in temperature and moisture content of wood framing - particularly in long spans," said Robert Wessel senior director of technical services for the Gypsum Association. "The swings usually occur during a change in season from summer to winter or in dry areas such as desert environments."

US: USG Corporation (USG) has elected Thomas A Burke to its board of directors. He will serve on the Audit and Governance committees of the USG board of directors. With the addition of Burke, USG's board includes nine independent directors.

Burke has been president and chief executive officer of Modine Manufacturing Company since 2008. Prior to his current role, he served as executive vice president and chief operating officer. Previously Burke served in several leadership positions with Visteon Corporation including vice president, North America and Asia operations, and Vice President, European and South American operations. Burke's experience spans a variety of roles over more than 30 years, including senior engineering and operations positions with other well-known companies such as Ford Motor Company and Deere and Company.

Burke serves on Modine Manufacturing's board of directors. In addition, he is a trustee of Manufacturers Alliance for Productivity and Innovation (MAPI), a board member of the United Way of Racine County, a member of the board of regents of the Milwaukee School of Engineering and a director of the National Association of Manufacturers.

Burke holds a bachelor's degree from Purdue University and has completed the Executive Business Program at Northwestern University's Kellogg Management Institute.

US: USG Corporation (USG) has announced two executive organisational changes effective from 1 October 2013. Christopher R Griffin, previously Executive Vice President, Operations is appointed Executive Vice President and Chief Operating Officer, USG Corporation. Jennifer F Scanlon, previously Vice President, USG Corporation and President, International, is appointed Senior Vice President, USG Corporation and President, International. Griffin and Scanlon will report to James S Metcalf, Chairman, President and CEO.

Since joining the company in 1997, Griffin has had responsibility for a variety of functions and departments, including sales, product management, marketing and international operations. He has more than 28 years of experience in the building materials industry.

Scanlon joined USG in 2003 as the Director of Supply Chain Management and Customer Relationship Management Strategy. In 2007, she assumed responsibility for the company's Information Technology strategy and operations until 2010, when she was appointed Vice President, International.

"These organisational changes will facilitate the continued implementation of USG's Plan to Win: Strengthening our core manufacturing and distribution businesses in North America and Diversifying the sources of our earnings, as we continue to Differentiate USG through innovation," said Metcalf.

US: The Gypsum Association, the gypsum industry association for North America, has announced that Stephen H Meima has assumed the position of Deputy Executive Director / Chief Operating Officer. The association said that, in this role, Maima would help strengthen the organisation as the gypsum wallboard industry's pre-eminent resource for leadership, education and objective expertise.

"I'm looking forward to working closely with Gypsum Association Executive Director Michael Gardner, the Board of Directors and committees and the staff to promote the value and sustainability of gypsum board and gypsum panel products," said Meima. "I am, indeed, eager to help advance the development, growth and general welfare of the gypsum industry in the US and Canada."

Michael Gardner praised Meima's extensive background in marketing and building materials management. "This position will contribute significantly to the Gypsum Association's ability to meet the challenges of representing a building materials industry as the economy continues to recover," said Gardner. "Steve's strong industry background and his experience in sustainability issues impart a substantial talent to our organisation."

US: US private equity firm HIG Capital LLC said that its portfolio firm, gypsum and plaster products maker Harrison Gypsum LLC had bought the Eagle Ford unit of aggregate materials and soil stabilisation products supplier Pinnacle Materials LLC. Financial details were not revealed.

US: PABCO Building Products has acquired the QuietRock sound-proofing wallboard business from Serious Energy, a producer of acoustic and thermal insulation. PABCO has not disclosed the cost of the purchase.

"Given our long history with PABCO, we were happy when they sought to acquire the QuietRock business. We look forward to a smooth transition," said Tassilo Baeuerle, the president and CEO of Serious Energy. Ryan Lucchetti, president of PABCO, added that the acquisition would expand PABCIOs range of products and give it access to new technology and staff.

QuietRock provides soundproof wallboard products to the commercial and residential building markets. PABCO is a longstanding QuietRock supplier and it plans to continue production at the QuietRock manufacturing site in Newark, California, according to Serious Energy.

US: USG Corporation (USG) has reported that its net sales rose by 15% year-on-year to US$916m in the second quarter of 2013 from US$798m in the same period in 2012. Net income rose to US$25m in the quarter compared to a loss of US$57m in 2012.

"We are pleased to generate net income for the second consecutive quarter," said James S Metcalf, Chairman, President and CEO. "Results in all major business units have improved from one year ago, including L&W Supply, which achieved an operating profit for the first time since 2008." Metcalf attributed the results to the success of the company's 'Plan to Win' business strategy.

Business unit highlights from the second quarter of 2013 included a 12% rise in wallboard shipments to 120MM2 from 107MM2.

US: International Paper has finalised the sale of its Temple-Inland Building Products division to Georgia-Pacific Building Products for US$710m in cash, subject to a customary closing adjustment. The division's assets comprise 15 manufacturing facilities including four gypsum wallboard plants. The facilities are located across eight states, primarily in the south-eastern and eastern portions of the US. The deal was originally announced in late 2012.

US: Mined gypsum supply in the US has risen by 43% to 3.41Mt in the first quarter of 2013 from 2.38Mt in the same quarter of 2012, according to a report from the United States Geological Survey (USGS). Imported gypsum production rose in the quarter year-on-year to 0.85Mt and synthetic gypsum production fell year-on-year to 1.79Mt. The overall total supply of gypsum rose by 21% year-on-year to 6.05Mt from 5.01Mt.

Total supply of board products stood at 327MM² for the first quarter of 2013, a slight decline compared to 334MM² for the first quarter of 2012 and a 19% fall to 403MM² in the fourth quarter of 2012. Major crude gypsum importers in the first quarter of 2013 included Mexico (0.34Mt), Canada (0.27Mt) and Spain (0.24Mt).

US: Lafarge has announced that is preparing the sale of its North American gypsum business to US private equity firm Lone Star in a deal worth an enterprise value of US$700m.

Lafarge North America's Gypsum division manufactures gypsum wallboards and joint compounds throughout a network of plants in the United States and Canada, including three US gypsum wallboard plants. In 2012, these operations generated sales of US$310m. The assets have been held for sale in the Lafarge's consolidated balance sheet since 2011.

This transaction, which is expected to close very soon, is subject to the satisfaction of customary closing conditions.

Global building materials producer Lafarge reduced its net debt by Euro700m in 2012 to Euro11.3bn. It sold the majority of its worldwide gypsum business – in Asia, Europe, South America and Australia – to Boral and Etex in 2011. Lafarge retains a 20% stake in the joint venture with Etex.