Gypsum industry news

US: USG has sold its gypsum mine in Empire, Nevada to the Empire Mining Company for US$10.3m. The Empire Mining Company purchased the mine and associated land on 27 May 2016, according to land records accessed by the Reno Gazette-Journal. USG shut the mine in late 2010 and the locale has since been described as a 'ghost town'. USG has not commented on the sale.

US: Eagle Materials has reported that its revenue rose by 7% year-on-year to US$1.14bn in the financial year that ended on 31 March 2016 from US$1.07bn in the previous period. Its earnings fell by 18% to US$153m from US$187m.

By business sector its gypsum wallboard operating earnings rose by 9% to US$159m from US$146m. Its wallboard sales volumes rose by 8% to 222Mm² from 205Mm².

US: Gypsum Management and Supply (GMS) has acquired Wall & Ceiling Supply Company, a Seattle-based distributor of wallboard and construction products for residential and commercial applications. The company will continue to operate under the name Wall & Ceiling and the management team will remain intact.

China: The Ministry of Justice has returned a lawsuit in which thousands of US homeowners say a 'cabinet-level' agency should pay for damage to their homes from alleged defective wallboard made in China. The ministry says it won't serve the legal papers because the agency is immune to such lawsuits and the legal service would infringe upon China's sovereignty.

US District Judge Eldon Fallon has ruled that Taishan Gypsum Company must pay for damages from the wallboard it made. The judge is considering damages for up to 4000 homeowners in six states. The brief letter from Beijing became part of the court record this week, about 21 months after lawyers for the homeowners sued the state-owned Assets Supervision and Administration Commission, which oversees 117 state-owned companies. It was dated 8 April 2016.

Fallon ruled in 2010 that Taishan's wallboard emitted sulphur gas that damaged the homes of seven 'bellwether' plaintiffs from Virginia, making occupants ill, corroding copper, silver and other metals, damaging appliances and electronics, and stinking up the houses so they were "hard if not impossible to live in." The other states involved in the lawsuit include Alabama, Florida, Louisiana, Mississippi and Texas, according to Associated Press.

US: USG's net sales have risen by 7% year-on-year to US$970m in the first quarter of 2016 from US$909m in the same period in 2015. Its operating profit rose by 67% to US$127m from US$76m. The building products company reported sales growth across its gypsum wallboard, ceilings and distribution businesses.

"We're off to a strong start in 2016, with arguably the best quarter we've had in almost a decade," said James S Metcalf, Chairman, President, and CEO. "We realised significant operating margin expansion in all of our US operations, led by our ceilings business which turned in an all-time record quarter."

The corporation's gypsum business saw its net sales rise by 10% to US$635m from US$577m. Its operating profit rose by 63% to US$111m from US$68m.
Wallboard sales volumes rose by 20% while the wallboard price was down roughly 2% on differences in mix and the timing of price increases. The corporation reported that a 28 March 2016 wallboard price increase has driven price improvement in wallboard through the first three weeks of the second quarter of 2016.

The USG Boral business generated US$7m of equity method income in the first quarter of 2016, down US$1m from the first quarter of 2015 due to poor exchange rates.

US: USG has launched USG Securock Brand UltraLight Glass-Mat Sheathing, a lightweight gypsum wallboard designed for use under exterior claddings. The board has a coated fibreglass facer mat to maximise coverage of air/water barrier systems, it has a treated gypsum core with a fibreglass face and back to provide water resistance and USG say it meets or exceeds the requirements of ASTM C1177.

"Our customers are always looking for innovative products to give them an edge, which is why USG is focused on bringing our gypsum panel technology to the glass-mat category," said Greg Salah, senior vice president, USG Corporation and president, North America. Securock will be rolled out regionally.

US: Transnational Group has delayed the start of gypsum mining and production at its property in Sandy Valley, Nevada. It blamed the setback on unforeseen delays by the Bureau of Land Management (BLM) in issuing Transnational's exploration permits due to the agency's lack of resources. It anticipates that it will will be able to obtain the necessary permits to commence exploration at the site within sixty to ninety days, barring any additional requests or delays by the BLM.

"Due to delays imposed by the BLM stemming from its lack of qualified geologists in our area that could not be foreseen by management, the timeline of our Sandy Valley Project has been extended. However, we expect to secure an exploration permit in the near future and anticipate that Transnational will continue its progress towards producing gypsum on this property," stated Transnational Group's CEO, Philip Dutoit.

US: Continental Building Products has elected Ed Bosowski to serve as chairman of the board of directors effective from 18 March 2016. He replaces Brad Boggess. Bosowski has been a member of the board of directors of the company since February 2014, and has over 30 years of experience in the gypsum wallboard industry.

The company also announced that Brad Boggess, Kyle Volluz and Grant Wilbeck resigned from the board of directors on 18 March 2016 following the sale by an affiliate of Lone Star Funds of all remaining shares of stock it held in the company. The three departing board members were affiliated to Lone Star Funds. The board of directors of Continental Building Products currently consists of five independent members and the company's president and CEO.

US: Headwaters Resources has announced it has entered into a definitive agreement to purchase 100% of the membership interests of Synthetic Materials based in Louisville, Kentucky. The acquisition, which is subject to the satisfaction of certain closing conditions, is expected to close in Headwaters current fiscal year. It is intended to complement the coal combustion product management operations of Headwaters.

Synthetic Materials handles synthetic gypsum processing and management. It has 21 years of experience providing services to the flue gas desulfurisation industry, including the design and construction of gypsum dewatering systems, gypsum marketing, landfill and pond management. At present it provides operations and maintenance services at 10 different utility sites and manages over 4Mt/yr of bulk synthetic gypsum, generating approximately US$25m in annual revenue. The expected purchase price will range between US$38 – 45m, depending upon certain conditions.

US: Continental Building Products sales fell slightly to US$422m in 2015 from US$425m in 2014. Despite this its net income rose by 5% to US$16.7m from US$15.9m. Wallboard volumes sales rose by 0.9% to 204Mm² from 203Mm².