Gypsum industry news

Europe: Microban International has secured a European patent relating to treated wallboard, increasing its portfolio of wallboard technology patents that include the United States, Canada, Mexico, China, Hong Kong, Australia and Brazil. The patent covers the incorporation of an antimicrobial additive package into the wallboard to resist the growth of mould and mildew. The patented wallboard employs a two-part anti-microbial system and an innovative targeting approach to provide protection against mould, mildew and fungus.

"These types of product patents help us to develop new specific formulations for dealing with microbial issues that wallboard may have, especially in humid or damp areas," said Ivan Ong, VP of research and development. "In wallboard, fungal issues typically occur at the interface between the paper and the gypsum core. Fungal infiltration of this nature can occur without visual cues until it becomes extensive and damaging. The patent provides an effective and manufacturing-friendly method to deliver a combinatorial package of antimicrobial agents to specifically target microbial issues this interface."

US: USG Corporation has reported its strongest quarterly net income since 2007. Second quarter 2014 net sales of US$948m were up by 3% from second quarter 2013 net sales of US$916m. USG's second quarter 2014 operating profit was US$98m compared to US$74m in the second quarter of 2013. Second quarter 2014 net income was US$57m. This compares to a net income of US$25m in the second quarter of 2013.

"I'm pleased to report our best quarterly results in seven years," said James S Metcalf, chairman, president, and CEO of USG. "Despite slower than expected acceleration in industry opportunity, most of our businesses and products improved their performance from a year ago and we also recorded our first full quarter of operations in our USG Boral joint venture."

The corporation's adjusted operating profit was US$93m in the second quarter of 2014, which includes adjusted equity method investment income of US$6m from USG Boral Building Products, compared to an adjusted operating profit of US$76m in the second quarter of 2013. Adjusted net income was US$48m in the second quarter of 2014 compared to an adjusted net income of US$26m in the second quarter of 2013. Adjusted net income in the second quarter of 2014 excluded, among other items, a US$12m gain on the sale of its New Jersey paper mill, which has been idled since 2009.

"We remain confident in the recovery, but challenges in the macro-economic environment still exist," said Metcalf. "However, we believe that the second half of the year will be better than the first half and we are well positioned to capitalise on the improving opportunity."

US: Eagle Materials has reported financial results for the first quarter of fiscal 2015, which ended on 30 June 2014. First quarter earnings before interest and income taxes increased by 21% year-on-year to US$59.8m, as first quarter sales volumes improved across nearly all businesses areas and sales prices improved in all businesses.

Gypsum wallboard and paperboard reported first quarter operating earnings were US$45.0m, up by 27% from the same quarter of its 2014 fiscal year. Improved wallboard sales prices and increased wallboard and paperboard sales volumes were the primary drivers of the earnings increase. Wallboard and paperboard revenues totalled US$136m, an 18% year-on-year increase. The revenue increase reflects higher average wallboard sales prices and higher wallboard and paperboard sales volumes. The average wallboard sales price grew by 11% year-on-year. Wallboard sales volumes of 569Mft² represent a 7% year-on-year increase.

Russia: The Peshelansky gypsum plant in the Nizhny Novgorod Region, Volga has started production of wall panels using gypsum chipboards. Such panels are used for interior finishing.

Vietnam: Knauf Vietnam has commenced construction of its first gypsum wallboard plant in the northern port city of Hai Phong on 16 July 2014. Located in Dinh Vu Industrial Zone, the plant has been one of the largest foreign direct investment projects in the city. Covering an area of 63,000m², the plant has a total investment of US$40m. When the plant is operational it will have a wallboard production capacity 12Mm²/yr.

"We have just launched two distributors in Vietnam, one in the south and one in the north and now we are starting the construction of our plant," said David Thomas, Knauf's general director. "We believe that, once completed by mid-2015, the plant will help us to gain a considerable market share in Vietnam in general and in the north in particular."

Thomas said that Knauf plans to expand its relationship with key partners such as distributors, architects, developers and government authorities, with an aim to widely introduce its products to the Vietnamese market.

"Dinh Vu Industrial Zone is a strategic location in terms of transportation and manufacturing that would provide the market with high quality products at competitive prices and improve the standards of the whole industry," said Thomas.

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.

India: Gypsum consumption in India is anticipated to grow at a compound annual growth rate (CAGR) of around 4% during 2012 – 2018 according to the latest market reports. The growing demand for gypsum, due to the amplified construction activity, high cement consumption and extensive use of gypsum in fertilisers and ceramic products, has resulted in escalating gypsum consumption.

Vietnam: Knauf Vietnam has introduced Duc Nam Construction and Trading Company as its first gypsum wallboard distributor in Hanoi in northern Vietnam. This is its second distributor in Vietnam after assigning one in the Cuu Long Delta region. Having received an investment license in 2013, Knauf Vietnam is building a 12Mm²/yr capacity gypsum wallboard plant worth US$40.7m in the northern province of Haiphong.

Brazil: Knauf has inaugurated its second wallboard plant in Camacri, Bahia. The US$66m plant will increase the company's annual production in Brazil by 80% to 45Mm²/yr. The company has forecast a 15% increase in sales volume in 2014, with the new plant supplying the north, north east and part of the central west regions of the country, with the possibility of exporting to the Caribbean and Africa. The plant is expected to be operating at full capacity within four to five years.

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.