It is also a major consumer of synthetic gypsum, a byproduct of flue-gas desulfurization. It produces a range of products for use in new residential, new nonresidential, and residential and nonresidential repair and remodel construction, as well as products used in certain industrial processes. USG managed through the Great Recession, which hit the residential and commercial construction markets in mid-2006, by cutting costs and closing older, less efficient operations. On February 17, 2006 USG announced a Joint Plan of Reorganization to emerge from bankruptcy. its construction metals plants, a paper-bag plant, and a lime plant, This page was last edited on 5 January 2021, at 23:57. USG announced a $900 million payment to the new trust was made that day and two subsequent payments totaling $3.05 billion would be made within the next 12 months if Congress failed to enact legislation establishing a national asbestos personal injury trust fund, such as the FAIR Act. USG operates an active narrow gauge railway, the last industrial narrow gauge railway in the United States. Italian marble is used as cladding and also in the highly ornate interior. Asbestos was a minor ingredient in some specialty products that the company had stopped selling almost 40 years earlier, in the 1970s. 1. On January 1, 1985, USG Corporation was formed as a holding company — a reverse merger in which United States Gypsum Company became one of just nine operating subsidiaries. The upgrade is based on continued improvement in USG's capital structure and financial flexibility resulting from strong operating performance and a successful debt reduction program. USG's stock dipped to 28 cents per share and the corporation emerged from bankruptcy 38 days later on May 6, 1993. USG was the eighth company in an 18-month period that was forced to utilize Chapter 11 to resolve asbestos claims. these materials may be printed and/or transferred USG Corporation, through its subsidiaries, manufactures and sells building materials worldwide. USG Corporation, through its subsidiaries, is a manufacturer and distributor of building materials. During 1969–1974 in the United States District Court for the Northern District of California, a series of civil antitrust cases were heard that came to be known as In re Gypsum Antitrust Cases. USG Boral – 50/50 joint venture with market leading position and sales of $1.2 billion in Asia, Australasia, and the Middle East. Together with other construction products, USG's most significant brands are:[2], In December 2013, Warren Buffett's Berkshire Hathaway became the largest shareholder in the company (holding roughly 30%) when it converted USG convertible notes it had acquired in 2008 to common stock. The poison pill was too much for the corporation to survive. The line hauls gypsum rock from the quarry to the plant. The UBBP segment manufactures, distributes and sells certain building products, mines raw gypsum and sells natural and synthetic gypsum throughout Asia, Australasia and the Middle East. Metcalf implemented the company's "Plan to Win" which involved strengthening its core manufacturing operations and L&W Supply distribution business, diversifying sources of revenues and profitability, and differentiating the company from competitors through innovative products and services. USG Corporation and its principal domestic subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code on June 25, 2001. 1984 USG Corporation is incorporated. USG Corporation is an industry-leading manufacturer of building products and innovative solutions. In October 1987, Texas oilman Cyril Wagner, Jr. and Jack E. Brown, through Desert Partners, LP, attempted a hostile takeover of USG, buying 9.84% of USG's outstanding stock. The interior also features gold leaf and satin-finish brown and American oak wood trim. USG has a large gypsum plant located 17 miles (27 km) west of El Centro, California, along highway Interstate 8, at Plaster City. It includes United States Gypsum Company, or U.S. Gypsum, in the United States, CGC Inc., or CGC, in Canada, USG Mexico, S.A. de C.V., or USG Mexico, and subsidiaries in Latin America. The following is a list of certain subsidiaries of USG Corporation as of February 12, 2015, the principal names under which such subsidiaries do business and the state or country in which each is organized. more on USG USG Corporation does not manufacture goods using slavery or other human trafficking. Originally called Adamant Panel Board, the product became known as Sheetrock in 1917. Gypsum segment manufactures and markets gypsum and related products in the United States, Canada, Mexico and Latin America. as of CY 2017. USG Corporation is a leading manufacturer and distributor of high-performance building systems through its United States Gypsum Company, L&W … All of these projects have a ground lease/rental agreement arrangement. By the 1930s, the company's policy of diffusion of manufacturing facilities, vertical integration and product diversification allowed it to operate profitably every year during the Great Depression. To help pay for all the new debt, USG sold off: and instituted large workforce reductions. Login with Gmail. Throughout the bankruptcy, USG common stock continued to trade on the New York Stock Exchange. USG decided to fight this attempt by offering $42 per share ($37 in cash and $5 in pay in kind debenture) plus a stub stock worth $7. [13] The Plaster City location makes Sheetrock brand gypsum panels. USG Corporation (together with its subsidiaries, called the “Co rporation” ) was incorporated in Delaware on October 22, 1984. The building was designed by Adrian D. Smith, FAIA, RIBA Design Partner at Skidmore, Owings & Merrill and constructed by Morse Diesel within its $110 million construction budget. Its products are distributed through building materials dealers, home improvement centers and other retailers, specialty wallboard distributors, and contractors. The new building is occupied 65% by USG and 10% by Humana Inc. As an incentive for USG to remain in the downtown Chicago area, the city of Chicago created a redevelopment agreement that contributed $6.5 million to the construction of the new building. Funding The Plan is funded by the USG Corporation Reti … The company's operations remained healthy and profitable while it was in Chapter 11. USG Corporation, through its subsidiaries, is a manufacturer and distributor of building materials. Brian J. Cook is executive vice president and chief administrative officer of USG Corporation, a manufacturer and distributor of high-performance building systems through its subsidiaries, United States Gypsum Company, USG Interiors, Inc., and USG International. The company's Gypsum division manufactures and markets gypsum and related products to construct walls and ceilings of residential, nonresidential, and institutional buildings; and … USG's bank lenders, bondholders and trade suppliers would be paid in full with interest. The plan worked and USG re-emerged to be a profitable corporation. The vast majority of the products our manufacturing subsidiaries sell in the United States are made by those subsidiaries in our plants located in North America. By 1917, a new manufacturing process produced boards with a single layer of plaster and paper that could be joined flush along a wall with a relatively smooth surface. To pay for the offer, USG took a poison pill by borrowing $1.6 billion from 135 banks, and issuing $600 million in 13.25% subordinated debentures due in 2000 and $260 million in 16% pay-in-kind debentures due in 2008. Stockholders would retain ownership of the company. In 1999, USG acquired Sybex, Inc. the holding company for Beadex (a competing joint compound manufacturer) and Synkoloid. It employs 7300 people. The gypsum is mined from a quarry located 20 miles (32 km) to the north, in the Fish Creek Mountains of Imperial County. The USG Foundation Board of Trustees create disregarded limited liability corporation (LLC) subsidiaries with the USG Foundation as the sole member to house these projects. The base building architect is De Stefano + Partners, with The Environments Group providing the interior space design and construction. Parts of the building lobbies were used in the filming of the 1994 film, Ri¢hie Ri¢h. USG immediately instituted a plan to buy back 20 percent of its common stock in an effort to fend off the takeover. United States District Court for the Northern District of California, United States District Court for the District of Delaware, "Sheetrock® Brand All Purpose Joint Compound", "Berkshire Hathaway agrees to pay $896,000 civil penalty", "Knauf and USG Agree to Transaction at $44 Per Share in Cash", "Knauf Completes Acquisition of USG Corporation", "Designation of Christiana Investors, L.L.C. [21] As a result, USG (together with National Gypsum Company and Kaiser Gypsum Company) were found to have violated § 1 of the Sherman Act for conspiring to establish and maintain prices of gypsum wallboard. USG Corporation, through certain of its subsidiaries, is a leading manufacturer of building materials. Recognized brands include Sheetrock, Durock, Fiberock, and Securock. Gypsum wallboard manufacturing facilities are reported to the SEC based on the extent to which the gypsum they use comes from synthetic or natural sources. USG Corporation has the following significant subsidiaries: USG purchased the line from the Pacific Portland Cement Company in 1946. USG's asbestos personal injury costs (before insurance) rose from $30 million in 1997 to more than $160 million in 2000, and were expected to exceed $275 million in 2001. USG stated that it did not participate, or engage in, any unlawful conduct.[23]. When the bankruptcy was completed in 2006, all creditors were repaid in full and USG shareholders retained equity in the company. In November 1986 the Belzberg brothers of Canada attempted a hostile takeover of USG. The sell-off and workforce reduction of 7% were not enough to allow USG to service the debt payments ($800,000 per day) in the economic downturn. A $3.95 billion trust was created to handle all existing and potential future asbestos lawsuits, thus permanently resolving the asbestos litigation issue. The following morning, the jury returned guilty verdicts against each of the defendants. 3 In December 2012, USG (together with National Gypsum, Lafarge North America and Georgia-Pacific), was accused in a class action for allegedly violating federal antitrust laws,[22] through raising prices on drywall products by as much as 35 percent, as well as halting a longstanding practice of letting customers lock in prices for the duration of a construction project. About USG Corporation: USG Corporation is a manufacturer and distributor of innovative, high-performance building systems through its United States Gypsum Company, USG Interiors, LLC, and L&W Supply Corporation subsidiaries and its USG Boral Building Products joint venture. USG had its own entrance with a lobby and occupied the first nine floors exclusively and parts of the 11th floor. Existing USG stock owners would be issued rights to buy new USG stock at a set price of $40 per share. Moody's Investors Service raised the senior unsecured credit ratings of USG Corporation (USG) and its subsidiary United States Gypsum Company to Baa2 from Baa3. On June 20, 2006 USG announced their Joint Plan of Reorganization was confirmed by two judges for the United States Bankruptcy Court and the United States District Court for the District of Delaware, allowing the company to complete the bankruptcy case and emerge from bankruptcy. 1 . On January 1, 1985, a holding company, USG Corporation (USG), was created, and US Gypsum became the largest of the holding company's nine operating subsidiaries. Estimated. USG Corporation, also known as United States Gypsum Corporation, is an American company which manufactures construction materials, most notably drywall and joint compound. The railroad built from the San Diego & Arizona Railway at Plaster City to the quarry. William C. Foote, the company's CEO for almost 20 years, retired in 2010, and 30-year USG veteran James S. Metcalf was elected Chairman, President and CEO. USG entered a 15-year lease, and occupied the building in early 2007. About USG. Its corporate offices are located at 550 West Adams Street in Chicago, Illinois. as project developer, authorization for execution of redevelopment agreement and agreement and issuance of tax increment allocation revenue note for the property at 550 West Adams Street", "US Geological Survey Bulletin 1711: Mineral Resources of the Fish Creek Mountains Wilderness Study Area, Imperial County, California", "SP Bulletin 1964 — They call it Plaster City", United States District Court for the Northern District of Illinois, "USG Accused in Lawsuit of Fixing Drywall Prices", "USG CORP, Form 8-K, Current Report, Filing Date Jun 21, 2006", Companies in the Chicago metropolitan area, https://en.wikipedia.org/w/index.php?title=USG_Corporation&oldid=998564262, Building materials companies of the United States, Industrial railroads in the United States, Manufacturing companies established in 1901, Companies formerly listed on the New York Stock Exchange, Companies that filed for Chapter 11 bankruptcy in 1993, Companies that filed for Chapter 11 bankruptcy in 2001, American subsidiaries of foreign companies, Creative Commons Attribution-ShareAlike License, Sheetrock Brand All Purpose Joint Compound, The trial judge's instruction to the jury was improper, as it emphasized a presumption of wrongful intent, rather than concentrating on verifying the defendant's state of mind through evidence and inferences drawn therefrom. [9] Other USG subsidiaries at the time included Alabaster Assurance Company, CGC, Donn Products, Exploracion de Yeso, Grupo Yeso, Gypsum Engineering, H & B Gypsum, L&W Supply, La Mirada Products Co., Inc, Red Top Technology, and Yeso Panamericano. USG Corporation has the following significant subsidiaries:[10]. [6], In June 2018, USG entered into an agreement to be purchased by the German building materials company, Knauf. USG Boral is a 50/50 joint venture and its sales are not consolidated. In 2005, USG announced it would not be renewing its lease at the 125 S. Franklin Street building and instead would move to a new building at 550 W. Adams developed by Fifield Companies. the drawings are intended solely as technical support incident to the sale and use of usg products and not intended to be a substitute for the design review and approval of the licensed design professionals for the project. Because gypsum was plentiful, and available at a relatively low price, and because the manufacturing process was so simple, new firms flooded and fragmented the market, placing constant downward pressure on prices. USG Corporation manufactures and distributes building materials. Headquartered in Chicago, USG worldwide operations serve the commercial, residential, and. Durock® Brand Cement Board offered new water construction solutions. [24] Under the agreement, USG would create a trust to pay asbestos personal injury claims. The company is the largest distributor of wallboard in the United States and the largest manufacturer of gypsum products in North America. The company was founded in 1902 and is headquartered in Chicago, Illinois. United States Gypsum Company (“U.S. For the service, USG would pay Berkshire Hathaway a $67 million non-refundable fee. The Court of Appeals for the Third Circuit reversed the convictions,[18] and that ruling was subsequently affirmed by the United States Supreme Court[19] on the grounds that: In 1940, the U.S. Justice Department filed suit against USG and six other wallboard manufacturers, charging them with price fixing under §§ 1 and 2 of the Sherman Act. In 1992, USG moved its corporate headquarters from 101 South Wacker Drive to 125 S. Franklin Street in Chicago, a site which it occupied until March 2007. The quarry is estimated to contain a deposit of 25 million tons of gypsum.[14][15]. In the 1890s, gypsum manufacturers perfected a method of strengthening plaster by adding a retarder, which controlled the setting time, thus creating a viable competitor to traditional lime plaster. USG Corporation, through its subsidiaries, manufactures and sells building materials worldwide. USG once again declared bankruptcy on June 25, 2001 under Chapter 11 to manage the growing asbestos litigation costs. 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