Gypsum industry news

Canada: Wallboard prices have risen in western Canada following the implementation of antidumping tariffs of up to 277% on gypsum wallboard from the US. Builders and suppliers fear the ruling could disrupt the supply of the product for construction projects, including the rebuilding campaign in Fort McMurray in Alberta, according to the Canadian Press news agency.

The Canada Border Services Agency imposed preliminary tariffs on 6 September 2016 on US wallboard into Canada for use in British Colombia, Alberta, Saskatchewan, Manitoba, the Yukon and Northwest Territories. The provisional duty ranges from 125% on imports from CertainTeed Gypsum and Ceiling, 105% on Georgia-Pacific Gypsum, 144% on USG and 277% on all other importers.

US: USG's net sales have risen by 5% year-on-year to US$1.97bn in the first half of 2016 from US$1.90bn in the same period in 2015. The company's net income rose by 37% to US$141m from US$103m. Net sales for its overall gypsum business rose by 6% to US$1.27bn from US$1.19bn. However, net sales for its gypsum business in Mexico and Latin America fell by 3% to US$93m in the first half of 2016 from US$94m in the same period of 2015.

"Our focus on operational execution in all of our businesses drove our improved second quarter results," said James S Metcalf, Chairman, President, and CEO of USG. "Expanding operating margins is a key priority for USG, and we delivered margin expansion in all of our businesses in the second quarter."

Canada: The Canadian Gypsum Company has stopped gypsum mining for the summer at its Little Narrows quarry in Cape Breton. A local councillor quoted by the Cape Breton Post newspaper said that mining has now stopped for the year. However he didn't believe that the company had yet decided whether to shut down the site completely. He added that synthetic gypsum taken from the power plants was replacing natural gypsum at gypsum wallboard plants along the east coast of the US.

In January 2016 the subsidiary of USG laid off 14 winter maintenance workers at the site.

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: 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: USG Corporation has grown its gypsum business operating profit by 65% year-on-year to US$316m in 2015 from US$192m in 2014. The company attributed the results to price rises.

"We finished 2015 on a strong note by achieving impressive margin expansion in our Gypsum and Ceilings businesses. Improved pricing in both businesses, coupled with our cost discipline, drove this increased performance," said James S Metcalf, Chairman, President and CEO.

Net sales for its gypsum business rose by 5% year-on-year to US$2bn from US$1.9bn. Notably, sales dropped by 4% to US$187m in its Mexico and Latin America region although profits rose in the saUSHme period.

As a whole, the company reported sales of US$3.78bn in 2015, a slight rise from 2014. Operating profit more than doubled to US$381m from US$162m. Its USG Boral business reported that its net sales rose by 7.6% to US$1bn. Its operating profit rose by 30.5% to US$125m.

Canada: The Canadian Gypsum Company, a subsidiary of USG, has laid off 14 winter maintenance workers at its Little Narrows quarry in Cape Breton, according to the Canadian Press. Mine manager Byron MacMillan said that company officials have yet to make a decision on the future of the quarry. The company is looking at market conditions and is reducing spending until a decision is made. The layoffs follow winter closing since 2008.

The quarry has operated since 1935 producing gypsum and natural rock. Traditionally it has shipped its products down the eastern seaboard.

US: 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.

US: 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."