Gypsum industry news

US: Stephen H Meima has been named as the executive director of the Gypsum Association. In this position, he leads the organisation's day-to-day operations, oversees its significant contributions to model building codes and standards and ensures that Association member companies and their customers receive vital services, including technical information on the proper selection and installation of gypsum panel products. The Gypsum Association represents all of the active gypsum wallboard manufacturers in the United States and Canada.

"The Gypsum Association has a lengthy history of service to both the gypsum community and the public in North America," said Meima. "I am proud to represent a building materials industry with a tradition of innovation and sustainability and an established commitment to safety and consumer satisfaction."

In addition to serving as the Gypsum Association's director of promotion from 1996 to 1999, Meima returned as CEO in 2013. During the interim, he served within a Gypsum Association member company for over a decade, taking on various marketing and communications leadership roles. Meima also headed marketing and membership at the Design-Build Institute of America.

A LEED Green Associate credential has enhanced Meima's ability to serve building professionals at a time when sustainability has taken on new and growing significance within the industry. In addition, Meima holds an Accreditation in Public Relations from the Public Relations Society of America.

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."

Thailand: Thai Gypsum Products, the manufacturer of Gyproc brand gypsum products in Thailand, has reaffirmed its positive outlook regarding market conditions in the second half of 2014 with its commitment to build a new warehouse / distribution centre in Surat Thani Province. Following its strategic plan to achieve 5% growth before the introduction of the ASEAN Economic Community (AEC) in 2015, Thai Gypsum Products continues to expand its national footprint following the opening of the 5th Gyproc Centre, which was launched recently in Phuket.

"Gyproc aims to become the market leader in gypsum production following the AEC integration," said Thongchai Kamolpattana, commercial director. "As Thailand is located centrally within the region, we believe that many foreign investors will be attracted to invest in the country, whether by development of properties they own or the expansion of their regional offices, both sectors requiring materials for construction."

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.

Thailand: Siam Gypsum Industry (SGI), a subsidiary of Siam Cement Group, expects sales of gypsum products to rise by 10% in its 2015 fiscal year, which started on 1 July 2014, to nearly US$182m due to the rebounding property market. SGI's managing director Soraphong Channarukul said that the property market was set to recover rapidly in the second half of 2014 after delays in the development of many projects.

SGI is launching its new gypsum wall product to spur sales growth in the second half of 2014. The country's overall gypsum demand should expand by 7% in the next 12 months, but SGI expects its sales will surge slightly beyond that thanks to its innovative gypsum product, Zolidwall.

Soraphong said that Zolidwall would save developers on costs, as it is stronger and lighter, requiring less time to install and decorate. Zolidwall costs 5 - 10% more than traditional wall materials such as cement, brisk and standard gypsum wallboard, but the cost will be offset by faster installation and decoration, plus it does not require the same level of skill as is required to build a traditional wall.

Yuthasak Naruchaipramote, SGI's innovation director, said that it took a year to develop a product that would satisfy the needs of customers seeking materials that save time but meet international standards. The development of Zolidwall followed close consultation from gypsum wallboard users and Pruksa Real Estate plc, Thailand's largest housing developer. Pruksa's housing projects and high-rise buildings will be among the first groups to use Zolidwall, according to Naruchaipramote.

SGI expects sales of 300,000Mm² of Zolidwall in the first year, with 30% growth within three to five years. It also plans to launch Zolidwall in Myanmar and Cambodia soon to tap their booming property markets. Zolidwall was developed at SGI's new US$627,550 product and system testing centre at the gypsum plant in Saraburi Province. The centre, which opened earlier in 2014, helps to ensure new products meet international standards. In the past only tailor-made products were launched.