Gypsum industry news

US: The Port of Monroe and DTE Energy have officially announced a partnership for the port to manage synthetic gypsum, a by-product of the Monroe Power Plant in Michigan.

"This is more than an agreement, but a partnership for mutual prosperity," said Paul C LaMarre III, Port Director. The partnership will bring new jobs to the community and help grow the economy, officials said. About 30 full-time jobs will be created. The port will build a 24,000ft2 storage building on its property, allowing gypsum customers to have direct shipping access to the material year-round.

Brian Rice, Director of the Monroe Power Plant, said that the company has been seeking a partner for a while to manage gypsum. "We wanted to work with someone locally," said Rice.
The Monroe Power Plant is one of the five-largest coal plants in the country and is the only plant in Michigan operating the flue gas desulfurisation system. "The advantage to this agreement is that it allows us to recycle all of it," said Rice about the gypsum.

In 2014, DTE recycled more than 350,000t of gypsum. Monroe Mayor Robert E. Clark called the partnership 'a great opportunity' between partners who have already had a long established relationship. "Outbound cargo is being generated and our community is better for it," said LaMarre.

US: Continental Building Products' net sales fell to US$108m in the third quarter of 2015 from US$114m in the same period of 2014. Its adjusted earnings before interest, taxes, depreciation and amortisation was flat at US$33.7m. Wallboard sales fell by 3.9% year-on-year to 590Mm2, while the average sales price fell by 0.7%, mainly due to the weaker Canadian Dollar and regional sales mix. Gross profit grew by 7.2% year-on-year to US$30m, primarily as a result of strict cost controls and favourable energy costs. Operating income fell to US$11.1m from US$20.2m in the same quarter of 2014.

Oman: USG Boral Middle East has started manufacturing its Sheetrock wallboard brand and wall solutions at its production unit in Salalah, Oman.

The local production will cater to its customers in the Gulf and the wider Middle East region. USG Boral Zawawi Drywall is the first to produce the Sheetrock brand in the Gulf Cooperation Council (GCC).

"Here in the Gulf region and around the world, our focus is on delivering innovation that helps our customers work smarter, do more and build better projects," said Fares Saghbini, the Managing Director at USG Boral Middle East. "That is exactly what the launch of our locally-produced Sheetrock brand wallboard products in the GCC enables us to do. We are delighted to bring our manufacturing facility and premium products closer to our customers without compromising on quality, dependability and, most importantly, the safety standards upon which Sheetrock's reputation has been built."

USG's Sheetrock production line in Oman has been fully certified by UL to produce fire rated products and will continue to undergo quarterly inspections according to UL's standards testing for quality, uniformity and safety including fire resistance.

Egypt: National Cement plans to add a new gypsum wallboard production line for US$1.24m, according to the company's Chairman. It has also decided to resume operations at its brick factory.

Asia: USG has expanded its business in the Asian region with a joint venture with Australia's Boral to strengthen its foothold in the wallboard market.

"Korea is our second-largest market and is one of the big elephants along with Australia, Thailand and Indonesia," said James Metcalf, USG President and CEO.

USG Boral, a 50-50 joint venture formed in 2014, entered the building materials business with sales and operations across Asia, Australasia and the Middle East with a goal to grow earnings from the regions and to transform the business over the longer term through its product and manufacturing solutions, which include ceilings, cement board, fibreboard and lightweight wallboard.

Metcalf said that USG Boral has a five-year capital plan of investment in the areas and facility expansion, as well as transfer of technological know-how. He declined to disclose the exact amount of investment, citing confidentiality. "With strong GDP growth, Asian countries' adoption rate is expected to increase. The critical mass happening in Korea and the rest of Asian countries will continue to round out our portfolio," said Metcalf.

Metcalf said that the marriage between USG's building supply technologies and Boral's wallboard distribution footprint in the Asian and Australian markets is expected to create greater synergies in the next decade. "I wouldn't be surprised if this part of the business becomes larger than what we have in North America in the next 10 years," he said.