Gypsum industry news

US: The board of directors of the Genesee County Economic Development Centre (GCEDC) has approved the final resolution for application for assistance from United States Gypsum (USG).

USG is planning to upgrade its papermill in Oakfield, New York State. The project will include replacing and relocating equipment, stock cleaning and enhanced manila production to improve the safety, quality and efficiency of the facility. The upgrades will consist of three phases and is expected to commence in 2016. The projected capital investment is approximately US$23m and the investment will retain 98 manufacturing jobs and create 12 new production jobs.

Canada: USG's Canadian subsidiary, CGC Inc, has introduced CGC Sheetrock® Brand UltraLight Mold Tough® Panel to the Canadian market. It is the lightest 1/2" mould-resistant gypsum panel available in the industry. This innovative gypsum panel is 20% lighter than traditional water and mould-resistant panels, making it easier to lift, carry and install.

CGC Sheetrock® Brand UltraLight Mold Tough Panels have a non-combustible, water and mould-resistant core encased in 100% recycled water and mould-resistant green face and brown back papers. The green face paper is folded around the long edges to reinforce and protect the core and the ends are cut square and even. The long edges of the panels are tapered, allowing joints to be reinforced and concealed.

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: 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.

Oman: Zawawi Gypsum has loaded its first export consignment of gypsum from the port of Salalah. The vessel loaded 66,000Mt of gypsum destined for India. A press release said that the company expects exports to increase to 2Mt/yr within the next three years.

''This shipment is the beginning of a long-term relationship between the port and our company. This relationship will grow stronger when our facility in the free zone commences exports through the port. Salalah, with its proximity to the main trade lanes and direct main line connectivity to our export destination was the ideal location for our facility in Oman,'' said Ramachandran, CEO of Zawawi Minerals.

Zawawi Minerals has created two joint ventures with USG Corporation, Zawawi Gypsum and Zawawi Drywall. Zawawi Drywall is building a 8MM2/yr gypsum wallboard plant. The US$37m plant is expected to be opened in early 2015. It will target growing markets in the Middle East, India and East Africa.

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: 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.