Gypsum industry news

USA: A new study highlights the top reasons that crop growers apply gypsum to cropland. The research cites increased yields, valuable sulphur fertility and soil quality improvements as key benefits of gypsum use, contributing to positive financial returns. The study involved an extensive review of published scientific literature, in-depth interviews with several long-time gypsum users and a survey of US farmers.

"On average, gypsum users received US$1.68 in return for every US$1 invested in gypsum. In addition, gypsum significantly improved the productivity of their soil," said Marvin Batte, professor emeritus of The Ohio State University. "Many gypsum users experienced even higher returns. Plus, there were significant environmental benefits as well."

"Returns were highest for alfalfa where users experienced dramatic increases in yield," said Batte. "In alfalfa, returns per dollar of gypsum cost were often 5:1 or higher. In corn, returns were 2:1 or higher. Alfalfa is a crop with a high sulphur requirement and gypsum supplies sulphur in the sulphate form, which is readily available to plants, unlike elemental sulphur that must be converted to a usable form," said Ron Chamberlain, lead agronomist for Gypsoil. The value of sulphur in gypsum is more than US$16/acre (24281m²) for a 6t alfalfa yield and more than US$5/acre for a 200-bushel corn crop. Producers also found that gypsum improved the effectiveness and efficiency of other plant nutrients, including nitrogen, phosphorus and potassium.

While increased yield and improved fertility were among the easiest benefits to measure, improved soil quality was viewed by many, especially long-time gypsum users, as the most important benefit. The most valuable soil improvement benefits included improved plant rooting, improved seedling emergence, increased soil water retention, reduced runoff and improved absorption of nutrients. Enhanced soil biological activity was also noted.

US/Australia: The Commission of New Zealand has granted clearance to USG Corporation and Boral Limited to enter into a joint venture.

The proposed joint venture relates to the two parties' operations in Asia, India, the Middle East and Australasia for the supply of plasterboard, ceiling tiles and ancillary building products such as metal studs and tracks, metal ceiling grids and metal ceiling battens.

The Commission found no significant overlap between USG and Boral in the plasterboard and ceiling tile markets and therefore focused its investigation on the supply of metal building products because the proposed joint venture would give USG Corporation an interest in Rondo Building Services Pty Ltd. At present, both USG and Rondo supply a range of metal building products in New Zealand.

The Commission was satisfied that the proposed joint venture will not have, or would not be likely to have, the effect of substantially lessening competition in separate markets for the supply of metal studs and tracks, metal ceiling battens and metal ceiling grid.

"In all three of these markets, the proposed joint venture would face competition from a number of different suppliers including both domestic manufacturers and importers," said Commerce Commission chairman Mark Berry.

US: Washington-based Summit Drywall has been ordered to pay US$550,000 in overtime, back wages and damages to nearly 400 workers to settle a lawsuit that was filed by the US Labour Department.

The Labour Department said that it had obtained a federal court consent judgement ordering Summit Drywall and its owner to pay the money to current and former employees. The department said that the company would pay US$275,000 in back wages and another US$275,000 in damages to workers who were illegally denied overtime from October 2009 to April 2013.

Around 380 workers will receive money. Investigators found that the workers were not compensated for all the hours they had worked.

US: USG Corporation has reported fourth quarter 2013 net sales of US$915m, up by 12% from fourth quarter 2012 net sales of US$815m. USG's fourth quarter 2013 operating profit was US$60m compared to an US$8m operating loss in the fourth quarter of 2012. USG's fourth quarter 2013 net loss was US$3m, compared to a US$13m net loss in the same period of 2012.

USG's adjusted net income was US$22m in the fourth quarter of 2013 compared to an adjusted net loss of US$52m in the fourth quarter of 2012. The adjusted net loss in the fourth quarter of 2013 excluded, among other items, a US$16m pension settlement charge related to a lump-sum payout to terminated employees that lowered the pension obligation by approximately US$80m. The adjusted net loss in the fourth quarter of 2012 excluded, among other items, a US$55m gain from the sale of the corporation's European operations.

"We're pleased to have delivered a fourth consecutive quarter of positive operating results with improved performances in all major businesses," said James S Metcalf, chairman, president and CEO. "Our plan to win is working and we expect to improve upon our results as we capitalise on the increasing opportunity in our end markets."

USG recorded full year 2013 net sales of US$3.6bn, an operating profit of US$258m and a net income of US$47m, with an adjusted net income of US$73m. For the full year of 2012, net sales were US$3.2bn, operating profit was US$73m and net loss was US$126m, with an adjusted net loss of US$124m.

"2013 was a foundational year for USG, however our work is not done," Metcalf said. "We remain committed to keeping our breakeven low and delivering our balance sheet, while seeking organic growth opportunities as we build the USG of the future."

Australia/US: USG Corporation has announced that it and Boral Limited continue to progress toward completion of their 50/50 strategic joint venture. While completion was originally anticipated to occur by 31 January 2014, it is now expected to occur on or before 28 February 2014, due to additional time being necessary to obtain regulatory approvals.

US: National Gypsum has halted its plans for a West Milton power generation plant fuelled by burning tyres due to the plummeting price of natural gas and protests from local residents.

National Gypsum planned to buy steam and electricity produced from the plant, but with the price of natural gas considerably lower, using the tyre-burning power generator no longer offered cost savings. The company stated that it still firmly believes the En-Tire project is environmentally sound and would have provided much-needed jobs, but that it must also consider the objections of the White Deer community, with which it has a good working relationship.

"I'm glad to hear that," White Deer township supervisor Don Wilver said. "That speaks well of them as a partner in the community."

The Tyre Burner Team, a group that vocally and persistently protested the plant, plans to share its steps with other organisations and remains ready to re-commit to stopping the project should any such plans emerge again.

En-Tire Logistics LLC of Bedford, Texas, which would have operated the facility, plans to pursue a tyre-derived fuel plant elsewhere in Pennsylvania. The company is disappointed over the demise of the White Deer Energy Project, said CEO Willess Vincent. "We will be looking for another site for the facility and will absolutely look in Pennsylvania," he said, but would not disclose where. Vincent signed the written request sent to the state Department of Environmental Protection to shelve the air-quality permit approval the agency had granted the project in September 2013.

US: Rhino Linings Corporation has acquired the assets of Expo Industries Inc, a San Diego-based manufacturer of Expo Stucco™ interior and exterior stucco products, sealers, bonders, patch products and plaster mixes.

The acquisition expands Rhino Linings line of building products, which already include waterproofing products, spray polyurethane foam insulation, decorative concrete and epoxy flooring systems.

"Expo Stucco is a well-respected and recognised leader in the building industry," said Pierre Gagnon, president and CEO of Rhino Linings Corporation. "Since Expo Stucco blended and packaged our Concrete Solutions bag mixes, we are now able to bring product packaging in-house and expand our line of building products. We are also excited about the opportunity to expand name recognition and sales for the Expo Stucco brand."

US: A US$24m settlement has been reached between owners of Villa Lago, a collection of private residences in Boynton Beach, South Florida and Coastal Construction regarding 'defective' Chinese wallboard.

A two-tower condominium complex was constructed by RCR Holdings II LLC at Villa Lago using Chinese wallboard. Once the residents became aware of the 'defective' wallboard they formed a class action and sued RCR Holdings. However, since RCR kept equity in the property, the two sides soon joined forces against the general contractor, Coastal Construction and other defendants.

RCR Holdings maintained that Coastal Construction and the other defendants knew the wallboard was defective when it was being installed. They further alleged that Coastal's conduct fell below the duty of care owed the class. The defendants denied knowingly using defective wallboard, although a settlement was eventually reached after six mediations.

Coastal agreed to pay US$24m, which was preliminarily approved by US District Judge Eldon Fallon on 24 April 2013. The Villa Lago owners are using the funds to remove the 'defective'wallboard.

US/Canada: Georgia-Pacific plans to 'idle' one wallboard plant in Caledonia, Ontario and one wallboard plant in West Memphis, Tennessee in early 2014. Eric Abercrombie, a spokesperson for Georgia-Pacific, attributed the decision to production optimisation and a slow recovery in the building materials market.

"We are doing this because of market conditions and the fact we've just acquired new capacity through a merger," stated Abercrombie to local media. 60 employees will be affected at the Caledonia plant and 39 employees at the West Memphis plant.

In early 2013, Georgia-Pacific acquired four new gypsum wallboard plants when it took over Memphis-based Temple-Inland Building Products from International Paper. That deal, worth US$750m, added 1800 employees to Georgia-Pacific and 16 production facilities.

US/UK: The gypsum market is forecast to grow at a compound annual growth rate (CAGR) of 9.9% to reach approximately US$2.4bn by 2018, and US$3.8bn by 2023, according to a new report by analysts Smithers Apex. 'The Future of Gypsum: Market Forecasts to 2023' reports that 252Mt of gypsum is expected to be consumed in the year 2013, with 31.9% and 62.5% being consumed in the plasterboard and cement industries respectively.

The market study reports that about 75% of gypsum is used in wallboard manufacture in the US and Western Europe. Outside of these regions, Smithers Apex reports that one of the major factors driving gypsum consumption is population growth, particularly in India and China, as developing countries move from traditional wet construction techniques towards dry construction using materials such as prefabricated wallboard. Countries such as China are also encouraging wallboard usage through government policies.

The report also describes how a large portion of the world's gypsum is produced from a very large number of small operations in developing countries. For example, there are as many as 400 mines in Iran and probably more in China. The US ranks fifth globally in raw gypsum production after China, Iran, Iraq and Spain. US crude gypsum production in 2012 grew by 11% to 10.4Mt. In 2012, 10.7Mt of this gypsum was synthetic, and 11Mt was calcined gypsum.

The global financial crisis saw demand for gypsum drop in the construction industry by around 20% in 2008. The decline slowed between 2002 and 2010 and stabilised in 2011. The US and other parts of the world saw a strong recovery period in 2012. The most likely path forward for the US construction industry will be a relatively steady one, that features moderate recovery through 2013 and accelerates in 2014 and beyond.