Gypsum industry news

Canada: The Canadian International Trade Tribunal has started an inquiry to determine whether the dumping of gypsum wallboard from the US has damaging effects on the local market. The inquiry follows an investigation by the Canada Border Services Agency. The tribunal will determine whether the dumping has caused injury or retardation or is threatening to cause injury to the domestic industry.

The tribunal is an independent quasi-judicial body that reports to the Canadian parliament through the Minister of Finance. It hears cases on dumped and subsidised imports, safeguard complaints, complaints about federal government procurement and appeals of customs and excise tax rulings. It can also offer advice on economic, trade and tariff matters.

USA: GMS Inc. has announced its acquisition of Olympia Building Supplies, LLC, a leading supplier of wallboard and related construction products including steel studs, joint compound, finishing products, insulation and other specialty products to the South Florida market. Founded in 2008, Olympia has grown rapidly from a single location in Pompano, Florida to the current network of three branch locations located in Pompano, Miami and West Palm Beach. Olympia will continue to operate under its current name, which 'has garnered significant respect and brand recognition among professional contractors in its markets. The entire team will join GMS, including its General Manager, Roger Shingler, an established and respected industry veteran.'

Shingler said, "Combining forces with GMS is the right next step in our growth trajectory. GMS shares our passion for customer service and our commitment to providing high-quality products. We have successfully expanded our business to become a leading specialty distributor in Pompano, Miami and West Palm Beach, Florida. We are excited to further improve our ability to serve new and existing customers with the strong support of GMS' national scale, operational expertise, and strong financial position. Being a part of the GMS family is the perfect fit for us."

Chris Doyle, Vice President of the Southeastern division of GMS, added. "We are very happy to welcome the Olympia team to our company. Olympia is an excellent strategic fit for GMS with its broad product offering and loyal customer base in attractive markets. The acquisition of these three established locations in South Florida provides a very complementary addition to our strong existing positons in Central and Northern Florida. Furthermore, the highly seasoned team is driven by success. We look forward to integrating these assets onto our platform and remain vigilant in our pursuit to further strengthen GMS' leadership positions in the Southeast and nationally for years to come."

GMS Inc has also acquired Steven Kempf Building Material Company (SKBM) headquartered in King of Prussia, Pennsylvania. SKBM is a supplier of drywall, ceilings, steel studs and related construction products in the greater Philadelphia metro area and was founded in 1994. SKBM services large and small projects in the commercial and multi-family residential end markets. With a 132,000 sq ft state-of-the-art facility, it has an operating history of two decades and its entire team will join the company, including its founder and president Steven F. Kempf.

GMS operates a national network of distribution centers across the United States. GMS' extensive product offering of wallboard, suspended ceilings systems, or ceilings, and complementary interior construction products is designed to provide a comprehensive one-stop-shop for our core customer, the interior contractor who installs these products in commercial and residential buildings.

US: ABC Supply and USG have entered into a agreement in which ABC Supply will acquire USG's building product distribution business, L&W Supply Corporation for US$670m. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed before the end of 2016.

"As a world-class distributor of interior building materials, L&W reinforces ABC's leadership position in building materials distribution, and helps set the stage for our next phase of growth," said Keith Rozolis, ABC Supply's President and Chief Executive Officer.

Completion of the transaction will allow USG to reduce debt and achieve its target leverage ratio, accelerate high return investments in its Gypsum and Ceilings businesses through advanced manufacturing initiatives, and position the company to consider future capital returns to shareholders. The sale of L&W Supply is also expected to dampen USG's overall earnings cyclicality as well as provide opportunity for growth in the independent specialty dealer channel.

L&W Supply is one of the largest distributors of gypsum wallboard and suspended ceiling tiles in the US, serving its customers from 136 branches. ABC Supply is a wholesale distributor of roofing, siding, windows and gutter materials. The acquisition of L&W Supply will allow it to expand into the interior of the building through the sale of gypsum wallboard and suspended ceiling tiles and grid.

US: Arizona Instrument has released the Computrac Vapor Pro XL (VPXL), the latest in its line of moisture analysers. The Computrac Vapor Pro instrument line provides a moisture specific alternative to Karl Fischer titration without the use of chemical reagents. New features for the VPXL include an upgraded heater, compatibility with multiple sizes of sample vials, stepped temperature testing capabilities and a touch screen interface. Applications for the Computrac moisture analyser line include gypsum purity testing as well as uses in plastics, petroleum products, pharmaceuticals and chemical production.

US: Continental Building Products' (CBP) net sales have risen by 12.5% year-on-year to US$229m in the first half of 2016 from US$204m in the same period in 2015. Its net income rose to US$25.2m from US$1.89m. Sales volumes of gypsum wallboard rose by 4.2% to 59.7Mm² from 57.3Mm².

"For the second consecutive quarter, we experienced stronger demand in our markets east of the Mississippi, which generated a 13% increase in wallboard volume versus the prior year," said Jay Bachmann, the chief executive officer of CBP.

US: USG's net sales have risen by 5% year-on-year to US$1.97bn in the first half of 2016 from US$1.90bn in the same period in 2015. The company's net income rose by 37% to US$141m from US$103m. Net sales for its overall gypsum business rose by 6% to US$1.27bn from US$1.19bn. However, net sales for its gypsum business in Mexico and Latin America fell by 3% to US$93m in the first half of 2016 from US$94m in the same period of 2015.

"Our focus on operational execution in all of our businesses drove our improved second quarter results," said James S Metcalf, Chairman, President, and CEO of USG. "Expanding operating margins is a key priority for USG, and we delivered margin expansion in all of our businesses in the second quarter."

US: Eagle Materials' sales revenue from gypsum wallboard has fallen slightly by 1.6% year-on-year to US$113m in the first quarter of its 2017 financial year that ended on 30 June 2016 from US$115m in the same period in 2015. Overall company revenue rose by 1.5% to US$298m from US$285m. Gypsum wallboard sales volumes rose by 2% to 54Mm² from 53Mm².

US: The Gypsum Association has been designated a Preferred Provider under the International Code Council (ICC) Preferred Provider Program (PPP). The Gypsum Association already is an American Institute of Architects (AIA) Continuing Education System (CES) Provider.

The ICC PPP provides building code officials and others with education related to codes, standards, and guidelines, as well as building construction materials, products and methods. The Gypsum Association intends to provide online education for its GA-600 Fire Resistance Design Manual, a publication offering fire resistive designs referenced by model building codes.

Canada: The Canada Border Services Agency (CBSA) has launched an investigation in whether gypsum wallboard from the US is being sold at 'unfair' prices in British Columbia, Alberta, Saskatchewan and Manitoba, as well as the Yukon and Northwest Territories. The investigation is the result of a complaint filed by CertainTeed Gypsum Canada. The complainant alleges that jobs, profits and productivity in Canada are being harmed by the sale of these goods.

The CBSA and the Canadian International Trade Tribunal (CITT) will both play a role in the investigation. The CITT will begin a preliminary inquiry to determine whether the imports are harming the Canadian producer and will issue a decision by 8 August 2016. At the same time, the CBSA will investigate whether the imports are being sold in Canada at unfair prices, and will make a preliminary decision by 6 September 2016.

A national anti-dumping investigation into gypsum wallboard from the US was previously conducted by the CITT in 1992.

US: Owens Corning has dedicated a new plant for manufacturing glass fibre non-wovens in Gastonia, North Carolina. The plant will produce a glass veil that can be used to make gypsum wallboard, carpet and ceiling tiles and vinyl flooring and can be used in automotive applications. The unit is also capable of producing Sustaina veil products that use a bio-based, formaldehyde-free binder system.

"Our investment in Gastonia encompasses the most advanced glass veil manufacturing technologies – with the ability to make a broad range of products for diverse customers – a sustainable footprint and a highly trained workforce," said Suman Raha, general manager of Non-Wovens - North America, Owens Corning.