Gypsum industry news
USG to test Mars drill in gypsum quarry
19 November 2015US: USG Corporation has announced it has partnered with Honeybee Robotics, a spacecraft technology and robotics company, for the field testing of Honeybee's Planetary Deep Drill System. The field testing, which will take place at USG's Plaster City gypsum quarry in Salton Sea, California is part of Honeybee's broader Mars exploration program, which aims to better understand the planet and the capabilities needed to send humans to the planet by the 2030s.
"We are honored to be the only company in our industry to play a role in this innovative endeavour to advance planetary exploration and the broader field of science," said Dominic Dannessa, Senior Vice President of Operations and Chief Technology Officer at USG. "We believe innovation comes from inspired thinking inside our company and outside of it, so sharing our geotechnical expertise with Honeybee was a natural fit."
USG's Plaster City gypsum quarry was selected by Honeybee as the ideal site to test the Planetary Deep Drill due to gypsum's similarity to cryogenic ice observed on Mars, Enceladus, Europa and other planetary bodies. Honeybee will drill 100 feet into the depths of the gypsum quarry, which is significantly deeper than drills previously deployed to Mars were capable of accessing. The field test will assess the functionality of the Planetary Deep Drill and provide data for future improvements and enhancements. Scientists have suggested that inside gypsum crystals may be the ideal environment for life to exist on the surface or near surface or Mars.
Drilling at Plaster City will take place from mid-November 2015 until mid-December 2015.
CertainTeed publishes industry-first health and environmental product declarations for gypsum products
18 November 2015US: CertainTeed has announced that it is the first company in the gypsum manufacturing industry to offer Health Product Declarations (HPDs) and Environmental Product Declarations (EPDs) for wallboard products.
The newly-published HPDs and EPDs provide scientifically-robust and transparent information about environmental performance and third-party verification to confirm the true sustainability of a product. The declarations also allow products to contribute towards points in Leadership in Energy and Environmental Design (LEED) building projects.
42 HPDs have been published to cover all CertainTeed gypsum wallboard product categories, including standard and specialty wallboard; Type X fire resistant and M2Tech moisture and mould-resistant wallboard products; GlasRoc exterior sheathing; AirRenew Indoor Air Quality (IAQ) wallboard; SilentFX noise-reducing wallboard and Easi-Lite lightweight gypsum wallboards. Six EPDs, grouped by manufacturing plant location, are also now available for Easi-Lite and 5/8-inch Type X fire-resistant gypsum wallboard.
USG Corporation named one of ‘America's Safest Companies’
12 November 2015US: USG Corporation has been named by EHS Today as one of its 2015 America's Safest Companies. The award recognises 16 companies that have demonstrated innovative solutions to safety challenges, exhibited strong management support and employee engagement programmes and achieved injury and illness rates lower than average for their respective industries.
"We are proud to be recognised by EHS Today for our dedication to creating the safest environment possible for our 9000 employees around the world," said Brian Cook, Senior Vice President and Chief Administrative Officer at USG. "Safety is a core value of our organisation and every employee is committed to working safely; every minute, every task and every day."
USG's manufacturing facilities routinely operate at five to 20 times better than industry safety norms. Twelve of the company's 34 US manufacturing locations and three of its L&W Supply distribution facilities have applied and qualified for the Operational Safety and Health Administration's (OSHA) Voluntary Protection Programme (VPP) Star status. To attain the Star designation, USG employees and management work with OSHA to implement safety and health programmes and processes that go beyond regulations to further protect employees and promote safe operations.
"We developed and adhere to safety guidelines that exceed industry standards and regulations," said Paul Haney, Vice President, Global Safety and Health and Employee Relations and Chief Labour Counsel at USG. "At USG, we strive to create an injury-free workplace and model safe behaviours for our families, colleagues, customers and communities."
Kodiak to launch new wallboard company called Freedom Materials
11 November 2015US: Kodiak Building Partners, in a switch from its past practice of buying established companies, has announced the creation of a new business: Freedom Materials, a distributor of wallboard and related materials in Newark, Delaware. Freedom will be led by Silvio Ferrari, who Kodiak CEO Steve Swinney said 'brings nearly 25 years of excellence in serving customers in the building materials industry.' Freedom will be Kodiak's first operation in the Mid-Atlantic. Its other gypsum companies are New England Building Supply, Colorado's Jones-Heartz Drywall and the Dallas-Fort Worth area's Architectural Opening Professionals.
Wallboard Supply Co acquires Poulin Lumber
11 November 2015US: Londonderry-based Wallboard Supply Co, part of US LBM, has acquired Vermont-based Poulin Lumber. Poulin, based in Derby, Vermont, has supplied building products and hardware to homeowners and contractors since 1936. It has four locations in northern and central Vermont and sells engineered wood and wall panels, gypsum wallboard, insulation, roofing, moulding, windows, doors, fasteners, tools, kitchen and bath cabinetry and fixtures, as well as numerous lines of hardwood and laminate floors.
Port of Monroe and DTE Energy partner on synthetic gypsum management
09 November 2015US: The Port of Monroe and DTE Energy have officially announced a partnership for the port to manage synthetic gypsum, a by-product of the Monroe Power Plant in Michigan.
"This is more than an agreement, but a partnership for mutual prosperity," said Paul C LaMarre III, Port Director. The partnership will bring new jobs to the community and help grow the economy, officials said. About 30 full-time jobs will be created. The port will build a 24,000ft2 storage building on its property, allowing gypsum customers to have direct shipping access to the material year-round.
Brian Rice, Director of the Monroe Power Plant, said that the company has been seeking a partner for a while to manage gypsum. "We wanted to work with someone locally," said Rice.
The Monroe Power Plant is one of the five-largest coal plants in the country and is the only plant in Michigan operating the flue gas desulfurisation system. "The advantage to this agreement is that it allows us to recycle all of it," said Rice about the gypsum.
In 2014, DTE recycled more than 350,000t of gypsum. Monroe Mayor Robert E. Clark called the partnership 'a great opportunity' between partners who have already had a long established relationship. "Outbound cargo is being generated and our community is better for it," said LaMarre.
US: Continental Building Products' net sales fell to US$108m in the third quarter of 2015 from US$114m in the same period of 2014. Its adjusted earnings before interest, taxes, depreciation and amortisation was flat at US$33.7m. Wallboard sales fell by 3.9% year-on-year to 590Mm2, while the average sales price fell by 0.7%, mainly due to the weaker Canadian Dollar and regional sales mix. Gross profit grew by 7.2% year-on-year to US$30m, primarily as a result of strict cost controls and favourable energy costs. Operating income fell to US$11.1m from US$20.2m in the same quarter of 2014.
US: Eagle Materials has reported its financial results for the second quarter of its 2016 fiscal year, which ended on 30 September 2015. Its revenue grew by 16% year-on-year to US$329m and its net earnings fell by 41% to US$29.8m, reduced by US$26.2m post-tax due to non-routine items related to the oil and gas proppants segment. Eagle Materials' adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 14% to US$110m.
Eagle's construction products and building materials businesses continued to perform well during the second quarter of 2016, with the Cement and Paperboard businesses reporting record quarterly operating earnings and the wallboard, concrete and aggregates businesses reporting year-on-year improvements. Demand for building materials and construction products remains strong in each of its regional markets. Cash flow from operations improved by 12% and was used to fund the Skyway acquisition, make capital improvements, pay dividends, reduce debt and repurchase shares.
The decline in oil prices during the summer adversely impacted US oil and gas drilling activity, leading to further reductions in demand and pricing for proppants. As a result, it recorded impairments to several intangible assets originally booked in connection with its acquisition of CRS Proppants and revalued downward certain raw sand inventory values. The impairments and inventory revaluation charges totalled approximately US$37.8m pre-tax.
Gypsum Wallboard and Paperboard reported second quarter 2016 operating earnings of US$48.1m, up by 7% year-on-year. Improved Gypsum Wallboard and Paperboard sales volumes were the primary drivers of the quarterly earnings increase. Gypsum Wallboard and Paperboard revenues for the second quarter grew by 8% to US$143m. The revenue increase reflects higher Gypsum Wallboard and Paperboard sales volumes slightly offset by a 1% decline in the average Gypsum Wallboard net sales price. Gypsum Wallboard sales volume for the quarter grew by 9% to 619Mft2.
USG Corporation Reports Third Quarter 2015 Results
23 October 2015US: USG Corporation has reported that, on a consolidated basis in the third quarter of 2015, its net sales were US$972m, consistent with the third quarter of 2014.
On an adjusted basis, USG's net sales increased by US$20m or 2%. Operating profit improved by US$80m to US$102m. USG's adjusted operating profit was US$115m in the third quarter of 2015, an US$8m increase from the third quarter of 2014. USG generated US$76m in net income in the third quarter of 2015, compared to a net loss of US$12m in the third quarter of 2014. On an adjusted basis, net income of US$76m increased by US$14m from the third quarter of 2014. Foreign currency unfavourably impacted consolidated net income by US$8m in the third quarter of 2015. Adjusted results exclude results from Gypsum Transportation Limited (GTL) a shipping operation which USG has exited, litigation settlement charges and impairment charges were all recorded in the third quarter of 2014.
USG's gypsum segment generated US$89m of operating profit in the third quarter of 2015. On an adjusted basis, operating profit of US$89m improved by US$4m over the third quarter of 2014, led by the US gypsum business. Wallboard provided US$7m of improved operating profit, while the surfaces and substrates businesses contributed US$6m in incremental profit. These improvements were offset by US$5m of increased selling, general and administrative spending due to the timing of projects and costs incurred, as well as a US$4m unfavourable foreign currency impact.
The USG Boral business generated US$12m of equity income in the third quarter of 2015, consistent with the amount earned in the third quarter of 2014. On a currency-neutral basis, the USG Boral business earned US$15m of equity income, a US$3m improvement over the 2014 quarter.
"We saw margin expansion in our gypsum, distribution and USG Boral businesses, notwithstanding softer than expected demand," said James S Metcalf, Chairman, President, and CEO. "In the third quarter we saw improvements in wallboard, strong contributions from our surfaces and substrates businesses, organic margin growth in distribution and continued expansion in USG Boral. With our focus on controlling costs, we are well positioned to take advantage of an improving demand environment going forward."
Wynnchurch Capital invests in Gypsum Technologies
21 October 2015US/Canada: Wynnchurch Capital Ltd, a US-based private equity firm, has made a growth equity investment in Canada's Gypsum Technologies Inc.