Gypsum industry news

US: Tennessee State has launched a crackdown on construction companies classifying full-time workers as contractors in order to avoid taxes and insurance. A US$300,000 fine for misclassifying construction workers may be having a deterrent effect, according to officials with the Tennessee Department of Labour. The penalty was the largest to date in a state-wide crackdown on labelling full-time employees as contract workers.

TJ Drywall of Nashville was making US$2m/yr, but only paying 5% of what regulators say that they should have been in workers compensation and unemployment insurance premiums.

The Labour Department's Scott Yarbrough said that the practice remains rampant in the construction industry. "It upsets me when somebody who is following the rules, paying their insurance and paying their taxes like they're supposed to, is trying to compete with people who aren't."

After seeing the giant fine imposed, Yarbrough said that another business owner in Sumner County volunteered to reclassify his contract workers to avoid a fine. The money collected in fines for misclassifying employees will go toward hiring more investigators.

US: United States Gypsum (USG) will invest US$19m to upgrade its Oakfield paper mill in Genesee County, New York. USG has had operations in Genesee County since 1902. The company decided to invest in machinery upgrades and utility improvements in the Oakfield mill to ensure the future of the mill and retain 98 jobs. It also plans to add 12 new positions.

The Oakfield mill processes 250t/day of old corrugated waste, making it a major recycler in New York State. The facility once made USG's Sheetrock brand wallboard, but that operation closed in 2001. The plant now makes the brown back-side paper for wallboard.

According to New York State Governor Andrew Cuomo's office, the mill has been at risk of closure as other USG plants have the capability to produce more types of paper. The office said that USG qualified for up to US$665,000 in performance-based Excelsior Jobs programme tax credits and a US$400,000 capital grant from the state in return for its proposed US$19m investment and job creation commitments. USG also received a US$180,000 Community Development Block grant from the State Homes and Community Renewal programme and is applying for a grant from National Grid to assist with electrical infrastructure upgrades.

"USG's decision to strengthen its operations in New York is another example that the upstate economy is coming back," Cuomo said. "By supporting this expansion, we are securing and creating more than 100 jobs in the region and paving the way for continued growth by an employer with more than a century of history in Genesee County."

US: Paul Johnson Drywall Inc., an Arizona-based wallboard contractor, has ended its relationship with a labour contractor that misclassified workers as independent contractors, according to the US Department of Labour (DOL). Paul Johnson Drywall agreed to pay US$556,000 in overtime, back wages and liquidated damages to at least 445 current and former employees. It will also take steps to ensure misclassification does not occur again and will pay US$44,000 in civil penalties.

Paul Johnson Drywall had entered into a contract with Arizona Tract to supply wallboard labour. However, Arizona Tract misclassified workers as 'member/owners' and violated overtime and record-keeping provisions of the Fair Labor Standards Act (FLSA), according to the DOL. Paul Johnson Drywall also, prior to being solicited by Arizona Tract, failed to pay proper overtime to employees who were paid on a piece-rate basis. Investigators also found that Paul Johnson Drywall failed to keep complete and accurate records.

The company agreed to take steps to ensure its workers are properly classified and paid as employees and to improve compliance in the construction industry. Paul Johnson Drywall will hire a third-party monitor to ensure compliance and require any wallboard subcontractors to conduct regular training of supervisors and employees regarding the requirements under the FLSA. Paul Johnson Drywall has announced a classification initiative that includes reactivating 1325 workers as W-2 employees and hiring 627 new employees as a first step in its FLSA compliance programme, which was developed in conjunction with the DOL.

"We pride ourselves on having the most professional crews in the state and welcomed the opportunity to evaluate employment practices with the DOL," said Cole Johnson, president of Paul Johnson Drywall. "Our crews allow us to deliver clients unparalleled on-time delivery in the safest manner and as a result of these high expectations, we consistently pay our crews the highest wages. We're excited to be taking our business, as well as our trade and related industry, to the next level."

US: Eagle Materials Inc has reported financial results for fiscal year 2014, which ended on 31 March 2014. Company revenues were up by 40% year-on-year to US$898.4m and net earnings grew by 50% year-on-year to US$200m, reflecting improved sales volumes and stronger sales prices across all business lines. Annual revenue and earnings improvement also reflects the acquisition of assets, including cement plants in Missouri and Oklahoma on 30 November 2012.

Fiscal 2014 operating earnings from gypsum wallboard and paperboard grew by 46% year-on-year to US$138.5m. Revenues from gypsum wallboard and paperboard were up by 22% year-on-year at US$465.1m.

Gypsum wallboard and paperboard fourth quarter operating earnings were US$29.0m, up by 9% from the same quarter of fiscal 2013. The increase in operating earnings was due to higher wallboard sales prices and volumes, which were offset by US$1.5m maintenance costs, US$1.3m legal costs and US$0.9m natural gas costs, all of which grew compared with fiscal 2013. Gypsum wallboard and paperboard revenues for the fourth quarter grew by 11% year-on-year to US$106.3m. Wallboard sales volumes were up by 2% year-on-year to 442Mft² and paperboard sales volumes for the quarter grew by 4% year-on-year to 59,000t.

US: Continental Building Products, a manufacturer of gypsum wallboard and complementary finishing products, has announced its results for the first quarter of 2014, which ended on 31 March 2014.

Net sales increased by 4.2% to US$87.0m in the first quarter of 2014, up from US$83.5m for the same period of 2013. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) were US$20.2m, unchanged from 2013, operating income was US$6.3m, down from US$10.0m in 2013 and adjusted net loss was US$0.6m, compared to a net income of US$9.8m in 2013. Wallboard sales volumes were flat at 438Mft² due to adverse weather conditions. Lower wallboard sales volumes in Canada offset a 2.2% increase in US sales volumes.

"We achieved strong price gains in the first quarter of 2014 amid flat volumes, which were unfavourably impacted by adverse weather conditions in many of our markets in the eastern US," said Ike Preston, Continental's CEO. "Our adjusted EBITDA was stable compared to a year ago as our improvement in sales was offset primarily by higher energy costs. As we move forward in 2014, we believe the long-term recovery in housing markets remains in place and that we are well positioned to grow our business and leverage our low cost as demand improves."

US: United States Gypsum (USG) has announced that it has no plans to build a wallboard plant in Crystal River, Florida.

Although the company has received approval from the Southwest Florida Water Management District for a 1.750ML/day general water use permit, USG officials said that the company doesn't need the plant right now. However, officials said that USG is keeping its options open for the future.

Read the original story here: USG gets water permit for wallboard plant

US: United States Gypsum (USG) has received a 1.750ML/day water use permit for a planned wallboard and joint compound (spackle) manufacturing plant near the Duke Energy complex in the city of Crystal River, Florida.

In 2011 USG bought 0.716km² of land near the Progress Energy Florida power plant, now Duke Energy, to warehouse synthetic gypsum that is created by scrubbers at the coal-burning plants. USG takes all of the gypsum produced at the plant and moves it to the site by conveyor belt.

USG now plans to construct a gypsum processing facility at the site. Part of the water permit detailed a request for two 30.5cm wells to be located on the plant site, to which water will be piped. The plant will run six days a week, possibly seven during the peak building season.

Progressive Water Resources, which is handling the application process for USG, also investigated using reclaimed wastewater from Crystal River. However, that water has already been committed to Duke Energy.

US: USG Corp has reported a surge in profit for the first quarter of 2014, primarily on increased shipments and higher selling prices.

Chief executive officer James Metcalf said, "Despite the harsh winter conditions across most of the US during the first quarter of 2014, we delivered positive operating results and net income."

USG said that its US gypsum wallboard shipments rose to 1.15Bnft² (107Bnm²) from 1.11Bnft² (103Bnm²), while average wallboard prices climbed to US$166.66/1000ft² from US$153.07/1000ft² in 2013. Net sales for the first quarter of 2014 grew to US$850m, up from US$814m in the corresponding quarter of 2013. USG's first quarter profit surged to US$45m from US$2m.

US: Saint-Gobain's CertainTeed and home improvement retailer Lowe's have teamed up to offer the latest in backer board technology for easier, faster and more cost-effective tile installation projects.

Reinforced with embedded glass mats for added strength, moisture and mould resistance, Diamondback Tile Backer features a patent-pending polymer coating with a unique textured surface that creates a strong bond, reducing tile slippage during installation. Diamondback weighs 40% less than traditional cement boards and is much easier to handle, cut and install, saving installers valuable time. Highly mould resistant, CertainTeed's patented, proprietary Embedded Glass Reinforced Gypsum technology eliminates the need for an additional moisture barrier. Diamondback has also achieved GreenGuard Gold Certification.

"We are very excited about this partnership with Lowe's, which makes our innovative tile backer much more accessible to the homeowner DIY and contractor customer base," said Kelly Kuethe, marketing manager of CertainTeed.

US: Saint-Gobain has announced plans for a new, state-of-the-art North American corporate headquarters in Pennsylvania, USA.

Saint-Gobain said that the relocation will position it for greater growth and expansion in North America. The new headquarters will, for the first time, allow the company's local research team, which is currently based in Maryland, to be integrated with the company's operations team on one site. Saint-Gobain expects to accommodate future job growth and have the flexibility to relocate additional business units to the integrated site.

"This headquarters marks a step change in Saint-Gobain and CertainTeed's ability to serve our North American markets and it will be a shining example of a 21st century manufacturing business," said John Crowe, president and CEO of Saint-Gobain and CertainTeed Corporations. "With the building industry continuing to rebound, we've seized the opportunity to create a focal point for innovative design and development on the Eastern Seaboard, a place where our businesses and employees can continue to grow in a fully integrated, modern space that promotes collaboration across our business units, while offering significant room for future expansion."

By leveraging the full range of Saint-Gobain's portfolio of sustainable products and technologies, the headquarters is expected to achieve the US Green Building Council's LEED® Certification. The goal is to create a workplace that is energy-efficient, has superior air-quality and moisture management and makes a material difference in the comfort and health of employees.