Gypsum industry news

US: The Industrial Packaging division of International Paper has seen its sales fall by 2% year-on-year to US$14.2bn from US$14.5bn in the same period in 2015. Its operating profit fell by 11% to US$1.65bn from US$1.85bn. Overall sales volumes rose slightly to 9.4Mt from 9.3Mt. Paper used for gypsum production rose by 17% to 181,000t from 155,000t. In North America the company blamed the falling profits on fewer shipping days, higher input costs and higher operating costs.

US: SGK, a division of Matthews International Corporation, has created a global, unified packaging system for USG Boral. USG Boral hired SGK to brand its varied processes and brands packaging into one core and consistent master brand. The common goal was to unify 14 categories across 12 markets and 13 businesses into one cohesive efficient packaging system.

To prepare for the branding exercise, the USG Boral and SGK teams conducted audit sessions within the different markets and spoke to a range of stakeholders, architects, builders, contractors, distributors and end users. The aim was to create a unified portfolio architecture that allows for future 'premiumization,' whilst optimising brand recognition and product navigation. The new packaging design is intended to allow easy navigation of product types through vivid colours and bold typography. It also includes anti-counterfeiting measures.

"Our partnership with SGK has been a fascinating journey in designing a new, cohesive packaging system for our diverse portfolio across the Asia-Pacific and Middle East markets. The system manages to convey the union of USG Boral's premium positioning and best-in-class building products technology, manufacturing and distribution footprint. We are now becoming one USG Boral across 12 different markets and cultures throughout Asia, Australia and the Middle East," said Jeremy Verstraete, Marketing Director, USG Boral.

US: Eagle Materials revenue has risen by 5% year-on-year to US$933m in the first nine months of its financial year to 31 March 2017 from US$891m in the same period in the previous year. Its net earnings rose by 43% to US$162m from US$113m. Sales from its cement division rose by 7% to US$359m from US$335m. However, sales volumes fell slightly to 3.89Mt. Sales from its gypsum wallboard and paperboard division grew by 7% to US$440m from US$411m. Sales volumes of gypsum wallboard rose by 7% to 175Mm² from 164Mm².

US: The Gypsum Association (GA) has released revisions to five of its technical documents to update them with current best practice. These include: GA-220-2016 Gypsum Board Winter Related Installation Recommendations; GA-223-2016 Gypsum Panel Products, Types, Uses, and Standards; GA-226-2016 Application of Gypsum Board to Form Curved Surface; GA-234-2016 Control Joints for Fire Resistance Rated Systems; and GA-338-2016 Guidelines for Prevention of Mold Growth on Gypsum Board.

"Regular review and revision of GA documents is a key component of the association's technical services mandate and the GA's Building Code and Technical Committee (BCTC) has made a three-to five-year revision cycle for all documents a high priority," said GA Director of Technical Services Michael Schmeida.

All the documents are available for free via the GA.

Canada: The Canadian International Trade Tribunal has ruled that gypsum wallboard dumping from the US exports has caused injury to the domestic industry. The ruling means that preliminary duties of up to 276% imposed by the Canada Border Services Agency on imports from the US in September 2016 end but will be replaced by permanent variable duties on any imports that fall below a floor price established in December 2016, according to the Canadian Press.

In a separate ruling the tribunal also found that provisional duties in Western Canada have 'substantially' reducing competition in those markets. It has recommended that the government consider refunding some of the duties paid so far to alleviate short-term pain for contractors and consumers, and that it consider a special remission of duties to residents of Fort McMurray.

CertainTeed Gypsum Canada complained to the Canada Border Services Agency about wallboard originating in the US being sold at 'unfair' prices and this led to an investigation in June 2016. However, CertainTeed Gypsum Canada may have benefitted from being the only Canadian manufacturer of wallboard in Western Canada following the introduction of provisional duties in September 2016.

The tribunal will issue the reasons for its findings and recommendations in both cases on 19 January 2017.

US: Continental Building Products' net sales have risen by 10% year-on-year to US$343m in the first nine months of 2016 from US$311m in the same period of 2015. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 8.6% to US$100m from US$92m. Its gypsum wallboard sales volumes rose by 18% to 176Mm2 from 149Mm2. The company attributed this in the third quarter of 2016 to stronger demand in major construction markets, especially from new residential construction and overall in the southeast of the country.

"For the third consecutive quarter, we experienced stronger demand in our markets east of the Mississippi which drove the 6% net sales growth versus last year," said Jay Bachmann, Continental's chief executive officer.

US: Johns Manville (JM) has received UL certification for DuraCore 300 chopped strands used to reinforce wallboards in the building industry. The product is manufactured at JM's facility in Slovakia. The certification recognises the product for performance and safety standards.

"Our customers can continuously rely on UL certified DuraCore products with improved dosing consistency and dispersion in wallboards," said Jared Cox, Global Product Manager-Chopped Strands Fibers for JM Engineered Products.

US: Gypsoil is stopping production at its pelletised gypsum fertiliser plant in Winona, Minnesota. The plant has been shut down due to poor market demand, according to the Winona Daily News. The US$5m plant opened in early 2016. It used synthetic gypsum from coal smoke stack scrubbers in Ohio.

US: Net sales from USG's gypsum business have risen by 4.5% year-on-year to US$1.9bn in the first nine months of 2016 from US$1.82bn in the same period in 2015. Its operating profit rose by 18% to US$310m from US$262m. the company said that surfaces and substrates products drove US$5m of this improved profit. US wallboard volumes increased by 1% while domestic wallboard price was down roughly 1% from the third quarter of 2015. Inflation in wallboard input costs was offset by reduced selling, general and administrative expenses spending in the US gypsum business.

"I'm pleased to report that we expanded margins in both of our US businesses as well as in our USG Boral joint venture," said James S Metcalf, president and CEO of USG. He added that the company intends to use the US$670m from its sale of L&W Supply to reduce debt.

Overall, the company reported that its net sales rose by 4% to US$2.28bn from US$2.2bn and its net income rose by 13% to US$203m from US$179m. Sales from its USG Boral business rose by 4.9% to US$778m from US$742m. Improved results from USB Boral in the third quarter of 2016 were attributed to improved gypsum wallboard price and volume, manufacturing efficiencies and increased sales of 'adjacent' products.

Canada: The federal government has asked for a faster review of anti-dumping tariffs on gypsum wallboard imports. However, the new schedule isn't expected to immediately reduce the duties, according to the Canadian Press. The Finance Department says it wants to help middle-class families in Western Canada, especially those involved in the reconstruction of Fort McMurray, Alberta following wildfires earlier in 2016 that destroyed large numbers of buildings.

"I am grateful to hear the federal government is responding to our concerns and the concerns of people across Fort McMurray with the recent ruling by Canada Border Services Agency that effectively closed Western Canada from imported drywall,'' said Brian Jean, the leader of the opposition Wildrose Party in a statement. He added that his party will continue to ask the government to suspend the tariff during its review or exempt wallboard coming into Fort McMurray from the tax.

In September 2016 the Canada Border Services Agency imposed preliminary tariffs of up to 277% cent on US gypsum wallboard imported into Canada for use in British Columbia, Alberta, Saskatchewan, Manitoba and the Yukon and Northwest Territories. The agency said it was responded to a complaint by CertainTeed Gypsum Canada.