(from Jan 12) Chinese Drywall Cited in Building Woes

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http://online.wsj.com/article/SB123171862994672097.html

The Wall Street Journal

wsj.com

REAL ESTATE

JANUARY 12, 2009

Chinese Drywall Cited in Building Woes

By MICHAEL CORKERY

Some home builders already struggling in Florida's dismal housing market are

facing another headache: The Chinese-made drywall they used is causing

unpleasant odors and possibly leading to electric problems in dozens of homes

constructed during the housing boom

A handful of builders and environmental consultants are investigating whether

the drywall, a wide flat board used to create interior walls, is emitting

sulfur-based gases that may be corroding air-conditioner coils, computer wiring

and metal picture frames.

Some homeowners are concerned about possible respiratory problems, but the

Florida Department of Health says tests show that the levels of emissions from

the drywall pose no " immediate health threat. " The affected homeowners also

worry that the drywall problems will reduce their already decimated property

values and hamper their ability to?resell, even when the market recovers.

" My biggest fear is we'll be stuck with a house we can't sell, " said Marty

, whose air conditioner in his home near Tampa has had repeated problems.

His builder, Lennar Corp., recently tested the air and drywall in his house and

expects the results in a few weeks. Lennar's previous tests in other

developments have found no health threats.

Although officials are still investigating the drywall from China, the

complaints about drywall follow a rash of safety problems with other Chinese

exports, ranging from toys to pet food.

Lennar, the nation's second-largest builder by volume, has tested air quality in

at least 50 houses and has relocated several homeowners in order to rip out and

replace the drywall, a costly process. It is trying to find less-intrusive ways

to fix the problem. Lennar is continuing tests in a dozen of its Florida

developments and has shared results with the state health department.

" Our first concern is our homeowners, " said Darin McMurray, the builder's

southwest Florida division president. " Lennar will continue to stand by our

homes and work closely with homeowners to resolve their concerns. "

Typically, builders use domestically produced drywall, which is made mainly from

the mineral gypsum. But in 2006 -- amid the housing boom and the scramble for

construction material along the Gulf Coast for reconstruction after Hurricane

Katrina -- suppliers began importing drywall from China.

Much of the problematic drywall, which is also known as wallboard or

plasterboard, was manufactured in China. One manufacturer that is dealing with

the fallout is Knauf Plasterboard, Tianjin Co., a subsidiary of the German

construction-material company Knauf International GmbH.

In a statement, Knauf Tianjin said it hired experts in 2006 to investigate

complaints about an odor and found " no health concerns related to the odor or

any emissions in the residences. "

The drywall problems, which appear to be confined to south Florida, are sparking

dozens of homeowner complaints at a time when home builders can little afford

the expense and negative publicity.

" The building industry is in a situation where it doesn't need one more issue of

negativity out there, " said Aubuchon, president of Aubuchon Homes, a small

Cape Coral, Fla., builder that recently relocated one homeowner while the

company tests his house's air and drywall, some of which was made in China.

Knauf Tianjin said the drywall is made of naturally mined gypsum. After

investigating drywall odors, the company said it switched mines and installed a

monitoring device to detect gases.

In some Florida developments, the drywall issue emerged after months of failures

in heating and cooling systems.

Mr. said his air-conditioning unit has had multiple problems since he

moved into his Lennar townhouse in March 2007. He said repair workers were

perplexed by the frequency of the units' failures.

Tests done at other developments by Environ, an environmental consulting firm

hired by Lennar, found that in some cases they drywall was emitting sulfur-based

gases, which can be corrosive to electrical equipment, such as copper

air-conditioning coils.

Florida health officials say they still are investigating whether the Chinese

drywall is causing the odors and other problems.

" We have to nail down whether it's a causal or coincidental association, " said

Krause, a toxicologist in the Florida Health Department.

Write to Corkery at michael.corkery@...

Printed in The Wall Street Journal, page A3