fgd gypsum in wallboard and other products · fgd gypsum vs rock gypsum • gypsum is gypsum –...

FGD Gypsum inWallboard and Other Products

United States Gypsum Company – October 23, 2007

FGD GypsumWallboard and Other Markets• Key commercial properties of gypsum

• Use in wallboard• Other manufactured gypsum products• Challenges for increased usage

United States Gypsum Company – October 23, 20072

GypsumKey Commercial Properties

• Safe and non-toxic mineral

• Relatively abundant and low cost to mine

– Over 100 million tons mined globally

– Large deposits close to the surface

• Common by-product from sulfur processing

– FGD Gypsum

– Phosphogypsum

– HF,TiO2, Lactic Acid, Citric Acid, other waste H2SO4 streams

United States Gypsum Company – October 23, 20073

GypsumKey Commercial Properties

• Source of Calcium and Sulfate

– Agriculture

– Cement

United States Gypsum Company – October 23, 20074

GypsumKey Commercial Properties

United States Gypsum Company – October 23, 2007

CaSO4*2H20

CaSO4*1/2H20

250 FCaSO4*1/2H20 + 3/2H2O

CaSO4 (Anhydrite)

Heat

(Stucco or Plaster of Paris)

• Can be calcined at low temperatures forming Hemihydrate or Anhydrite– Provides fire resistance– Produces a low cost inorganic binder

5

Stucco - CaSO4*1/2H2O

• Reacts with water to reform rock

CaSO4*1/2H20 + 3/2H2O CaSO4*2H20

• Fast reaction (<30 minutes)

• Strong, fire resistant casts (10,000 psi possible)

United States Gypsum Company – October 23, 20076

FGD Gypsum in Wallboard

United States Gypsum Company – October 23, 20077

Simplified Flow Diagram of FGD Gypsum used for Wallboard Production

Dryer Calciner Storage

MixingForming Line

Drying Kiln

FGD Gypsum

CaSO4•2H2O CaSO4·½H2O

H2O

Land Plaster

Plaster of Paris (Stucco)

Mill

Board Plant

Additives

Product Board

CaSO4•2H2O

CaSO4•2H2O

Dryer

United States Gypsum Company – October 23, 20078

FGD Gypsum vs Rock Gypsum

• Gypsum is Gypsum – FGD or Rock

• FGD and Rock Gypsum have similar major impurities

– Limestone, Salts

• FGD is a moist cake (10%) versus dry rock

– Freight penalty due to water

– Energy costs to dry

– Added capital costs to handle and dry

United States Gypsum Company – October 23, 20079

FGD Gypsum in WallboardCurrent Usage

• 63% of all FGD Gypsum produced is recovered into

wallboard (ACAA)

• Over 27% of wallboard produced from FGD Gypsum

• 12 new wallboard lines built to handle FGD Gypsum

• 4 new lines announced

United States Gypsum Company – October 23, 200710

Wallboard IndustrySynthetic Gypsum Usage, tons

Based on Gypsum Association DataUnited States Gypsum Company – October 23, 200711

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

WALLBOARD INDUSTRYSynthetic Gypsum Growth

Based on Gypsum Association DataUnited States Gypsum Company – October 23, 200712

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Rock FGD

New Wallboard LinesDesigned for Synthetic Gypsum

13

1

8

7

9

5

6

2

43

1011

12

13

14

15

161999 - 2002

2007 and later

United States Gypsum Company – October 23, 2007

16 New Lines

30% of 2006 Capacity

FGD Gypsum Wallboard Market Fundamentals

• Location, Location, Location

– Markets are near metropolitan areas and growth

areas

– Wallboard plants located near major markets or

near low cost mines

• East Coast supplied from Nova Scotia

• West Coast supplied from Mexico

United States Gypsum Company – October 23, 200714

Wallboard Shipments by State

Based on Gypsum Association DataUnited States Gypsum Company – October 23, 200715

United States Wallboard PlantsBy Source of Gypsum

(Announced) Synthetic Gypsum

100% Synthetic Gypsum

Rock & Synthetic Gypsum

Rock Gypsum

FIBEROCK ® 100% Synthetic Gypsum

16

United States Gypsum Company – October 23, 2007

United States Gypsum Company – October 23, 200717

US EPA

18

Potential FGD Gypsum Growth

18United States Gypsum Company – October 23, 200718

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

2005 2006 2007 2008 2009 2010 2011 2012 2013

Year

Prod

uctio

n, tp

y

Wallboard Market Growth

Based on Gypsum Association DataUnited States Gypsum Company – October 23, 200719

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1959

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

(*)

2009

Year

MM

SF

FGD Gypsum in WallboardFuture Challenges

• FGD Gypsum expected to grow in the next 10 yrs.

– Primarily in the Midwest

• Limited new capacity needed in Midwest

– Supply to exceed demand in the near future

• No scrubbers planned in key markets

– West Coast

– Northeast

United States Gypsum Company – October 23, 200720

Other Industrial ProductsFGD Gypsum

• Plasters• Fillers• Gypsum Fiber Board

United States Gypsum Company – October 23, 200721

Plaster Products

• Building Plasters

• Industrial Plasters

• Environmental Binders

United States Gypsum Company – October 23, 200722

Building Plasters

United States Gypsum Company – October 23, 2007

Veneer Plasters

Fire proofing

Flooring

23

Industrial Plasters

United States Gypsum Company – October 23, 2007

• Molding Plaster– Arts & Crafts

• Non ferrous casting• Ceramic slip casting

– Statuary– China– Sanitary– Lamps

• Machinable casts• Tool manufacturing• Fireproof fill• Dental• Medical Implants

24

Environmental Binder

United States Gypsum Company – October 23, 2007

• Spray Applied• Dust Control• Stop Erosion• Reclaim slopes

25

Gypsum Fillers

• Food & Pharmaceutical

• Plastics

• Paper

• Better properties than limestone

– Lower density

– Less abrasive

– pH neutral

– Alternate crystal shapes and sizes

United States Gypsum Company – October 23, 200726

Multiple Products and FormulationsUSG Specialty Products Division(www.gypsumsolutions.com)

United States Gypsum Company – October 23, 200727

New Products for FGD GypsumGypsum Fiber Board

United States Gypsum Company – October 23, 200728

Gypsum Fiber Board (FIBEROCK© )

• 95% Recycled content – Green Cross Certified• Consumes over 200,000 tpy of FGD Gypsum• Made with recycled paper• Easy to cut, staple, nail or screw• Mold resistant, fire resistant• Used as a floor underlayment• Sheathing and roofing applications

United States Gypsum Company – October 23, 200729

Further Growth

• Location & transportation

• Low costs

• Consistent Quality

– Color

– Particle Size

– Purity

• R&D for new applications

United States Gypsum Company – October 23, 200730

FGD Gypsum Summary• Current success in wallboard

– High utilization rates

– Growing Industry acceptance

• Challenge for the Future

– Large supply coming

– Locations that are not near markets

• Potential for Growth

– Continued Growth in Wallboard

– Acceptance in other gypsum products

– New Products

United States Gypsum Company – October 23, 200731