Gypsum industry news

US: Kodiak Building Partners, in a switch from its past practice of buying established companies, has announced the creation of a new business: Freedom Materials, a distributor of wallboard and related materials in Newark, Delaware. Freedom will be led by Silvio Ferrari, who Kodiak CEO Steve Swinney said 'brings nearly 25 years of excellence in serving customers in the building materials industry.' Freedom will be Kodiak's first operation in the Mid-Atlantic. Its other gypsum companies are New England Building Supply, Colorado's Jones-Heartz Drywall and the Dallas-Fort Worth area's Architectural Opening Professionals.

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.