Gypsum industry news

US: USG has submitted a purchase application to the Michigan Department of Natural Resources (DNR) to expand its operations for its gypsum quarry at Alabaster, Michigan. The wallboard producer wants to buy 580 acres of state property adjacent to the sitem according to the Associated Press. The DNR says it will study the company's plan, considering issues involving forestry, wildlife, fisheries, recreation and minerals. It also will consult with tribal governments and host a public meeting.

USG founded the Alabaster quarry in 1902 and it employs 20 workers at the site. Customers for gypsum from the mine include LafargeHolcim cement plant in Alpena, Michigan and St Marys Cement’s cement grinding plant in Detroit. It says it wants to expand the quarry in order to extend its life span.

US: United States Geoogical Survey (USGS) data reports production of gypsum-based board products rose by 2.4% year-on-year to 2.35Mm² in 2017 from 2.29Mm² in 2016. Mined gypsum production increased by 7% year-on-year to 18.2Mt in 2017 from 16.7Mt in 2016. Synthetic gypsum supply rose by 4% to 16.7Mt from 16Mt. Imports of crude gypsum rose by 12.7% to 4.89Mt from 4.34Mt. The major importing countries remained Mexico, Canada and Spain. Exports of gypsum board products fell by 30% to 0.71Mt from 1.01Mt. The mjaority of these products were exported to Canada.

US: Ultimate Software says that National Gypsum is using its UltiPro product to manage its human resources system. The gypsum wallboard producer is using the product to address challenges in manufacturing and cost control and manage its skilled workforce. National Gypsum started working with Ultimate Software in 2004 and it launched UltiPro's talent management solutions in 2015.

"I can say without exaggeration we are creating ad-hoc reports daily that look at data such as labour allocation, succession planning and global demographics," said Bruce Williams, director of human resources at National Gypsum. He added that the real-time reports aid the company to adapt to industry conditions, extend key resources and make cost savings. The software product has also enabled National Gypsum to reduce the size of its human resources team.

US: Ann Franzen, the plant manager of USG’s gypsum wallboard plant in Rainier, Oregon has been recognised by the Manufacturing Institute as part of its annual Science, Technology, Engineering and Production (STEP) Ahead Awards. This marks the fourth consecutive year a USG employee has received this honour for her contributions to the manufacturing industry. The STEP Ahead Awards honour women who have demonstrated excellence and leadership in their careers and represent all levels of the manufacturing industry, from the factory-floor to the executive level.

Franzen, a STEP Ahead Honouree, joined USG more than 20 years ago. She became USG’s first female plant manager and has played a role in USG’s lean management initiative. Franzen is also a founding member of USG’s Women in Manufacturing group, which connects female plant employees across the USG network and promotes career advancement.

The STEP Ahead Awards are part of the larger STEP Ahead initiative, launched to examine and promote the role of women in the manufacturing industry through recognition, research, and leadership for attracting, advancing, and retaining strong female talent. In five years, STEP Ahead Award winners have impacted more than 300,000 individuals — from peers in the industry to school-aged children. The Manufacturing Institute will recognize all 130 recipients of the STEP Ahead Awards on 10 April 2018 at a reception in Washington, DC.

US: National Gypsum is considering reopening a gypsum wallboard plant in either Tampa, Florida or Wilmington, North Carolina. The wallboard producer plans to make its final decision late in 2018, according to the Greater Wilmington Business Journal. The Tampa plant was shut in 2008 and the Wilmington plant stopped operations in 2009. The company is planning to expand its presence in the south-east of the country.

US: Eagle Materials has reported its financial results for the third quarter of the 2018 fiscal year, which ended on 31 December 2017. It recorded record revenues of US$359.4m, a rise of 19% compared to the same period of the 2017 fiscal year.

Gypsum wallboard and paperboard revenues for the third quarter of the 2018 fiscal year totalled US$162.6m, which were 11% greater than the same quarter a year ago. The average gypsum wallboard net sales price this quarter was US$151.13/MSF, 1% less than the same quarter a year ago. Gypsum wallboard sales volumes were a third quarter record of 709MMSF, a 10% increase from the same quarter last year. Paperboard sales volumes for the quarter were also a record and 7% greater than the same quarter a year ago. The average paperboard net sales price for the quarter was US$581.95/t, 11% greater than the same quarter a year ago.

Gypsum wallboard and paperboard activities reported third quarter operating earnings of US$50.7m, up by 1% from the same quarter last year. The earnings improvement primarily reflects improved gypsum wallboard and paperboard sales volumes and higher average paperboard net sales prices.

During the third quarter, Eagle and its subsidiary, American Gypsum, entered into settlement agreements with counsel representing the direct and indirect purchaser classes to settle all claims made against the company and American Gypsum. Pursuant to the settlement agreements, which remain subject to court approval, the Company and American agreed to make payments totalling approximately US$39m. Eagle and American Gypsum continue to deny all wrongdoing but settled to avoid further litigation expense, distraction of management, and the risk of litigation. Eagle expects to make this cash payment in the next 12 months.

US: USG’s operating profit fell by 7% year-on-year to US$367m in 2017 from US$394m in 2016. Its net sales rose by 6% to US$3.2bn from US$3.02bn. In the fourth quarter the company reported that wallboard volumes in the US increased approximately by 14% while prices declined by 4% year-on-year. It made a net loss of US$95m in the quarter, in part due to a US$138m income tax expense resulting from the Tax Cut and Reform Bill.

“We had an outstanding close to a solid year for USG. The combination of focused operational performance by our manufacturing facilities and a high level of service to our customers enabled us to profitably grow our business, with net sales increasing by 13% and adjusted operating profit by 10%,” said Jennifer F Scanlon, president and chief executive officer of USG.

US: National Gypsum, Eagle Materials and PABCO Building Products have agreed to pay US$125m to settle claims that they fixed the price of gypsum wallboard. A preliminary motion to approve the settlement is scheduled to be filed in January 2018, said David Young, a partner at Cohen Milstein Sellers & Toll, a lead plaintiffs’ firm in the litigation, according to the Legal Intelligencer newspaper. The legal firm and others are representing wallboard customers, including distributors and installers.

The three wallboard producers are the last of seven defendants of a lawsuit that started in 2013. Previous deals with Lafarge North America, Temple Inland and USG bring the total amount of settlements for direct purchasers in the case to over US$190m. A seventh company, CertainTeed, was granted summary judgment in 2016.

Belgium/US: MoistTech and Belgium’s Weighing & Inspection have announced a strategic partnership to provide moisture measurement capabilities for manufactured materials to customers in the Benelux region. The partnership is intended to improve productivity and streamline operations for customers by implementing near-infrared (NIR) technology for moisture measurement and control. An initial primary focus will be developing a joint marketing capability.

“MoistTech is excited to partner with Weighing & Inspection to enhance our delivery of new features to the moisture measurement industry. This will enable us to become more efficient and reduce costs for a larger audience,” said Adrian Fordham, President of MoistTech.

US: USG plans to upgrade its Jacksonville gypsum wallboard plant in Florida. As part of the investment, a new production line will be added to manufacture USG’s Securock ExoAir 430 panels. Investments will be made at the site to improve overall plant efficiency, including upgrades to modernise process mill equipment.

Construction and plant updates are expected to be completed by the end of 2018. The company also plans to add approximately 20 new jobs as a result. The addition of the high-speed, automated production line in Jacksonville is intended to allow USG to distribute Securock ExoAir 430 to more customers throughout the US and Canada.