The first class-action lawsuit in the US state of Mississippi was filed last Friday in federal court in Gulfport, MS naming “Knauf Gips, Knauf Tianjin and Taishan, and possibly other unknown Chinese manufacturers” as defendants. This continues to build into what looks to be the next big products liability problem that China will take more major lumps on. The Florida Department of Health also released a 66-page report last Monday, though there is another investigation underway by Unified Engineering, a private Lab, due for release later today (Monday March 30 23: see here). What seems clear at this point, is that “moisture accelerates the release of volatiles from the drywall,” according to a letter from Lori Streit, a principal scientist with Unified.

I have been getting questions from readers in the US asking me where they can find info concerning this problem. The Florida Department of Health has a FAQ site, which I recommend those with questions have a look at. This is still new territory, so people are treading carefully.

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Update, March 31, 2009, 8:45 AM:

The following is from the WSJ from one hour ago:

Two U.S. Senators have filed a bill seeking a recall and temporary ban of certain Chinese-made drywall, the latest effort to address problems with Chinese-made drywall believed to be emitting unpleasant, sulfurous odors and causing unusual air-conditioner problems in homes from Florida to Louisiana.

Sens. Bill Nelson (D-Fla.) and Mary Landrieu (D-La.) introduced the bill, which also asks the Consumer Product Safety Commission to conduct a study in conjunction with the National Institute for Standards and Technology and the Environmental Protection Agency. They want the study to include at least 10 samples of drywall that was imported from China during 2004 through 2007 and used in residential dwellings in the U.S. The study should include at least one sample of drywall from residences located in Florida, Louisiana, Mississippi, Texas and Virginia, according to the bill’s text. The bill is called the Drywall Safety Act of 2009.

This may be the action that brings a public response from the Chinese government. It should be interesting to watch how this one plays out in a time of heightened economic tensions. A trade ban on any Chinese product is bound to rattle a few cages, though it is not clear to me how much Chinese drywall, if any, is currently being exported to the US. This may, in fact, be posturing, but even if it is, it will, no doubt require a posturing response.

On the legal side of things, there is some bad news. Builders learned that Chinese drywall manufacturer Knauf does not have insurance.

“I have a letter back from that one company – and there are other manufacturers – that says they didn’t have insurance. That doesn’t mean we won’t find somebody else responsible that did,” said Geoff Gentile of the Boyle and Gentile Law Firm.

Knauf Plasterboard Tianjin is part of Knauf, a German multinational supplier of building materials with a worldwide presence in 58 countries. No insurance? Right. And I’m posting this blog entry from Mars where I’m sitting with Manny Ramirez passing one back and forth, wondering where we’re gonna find some water and a better contract than the LA Dodgers waved in his face.

One of these days this is going to become a real story on this side of the Pacific. No insurance. That ought to do it. Nahhh. Still no dead pets or small kids with kidney stones.

Though there will, no doubt, be many questions asked concerning the US drywall, currently the speculation is that these companies may have bought Chinese drywall and relabeled it as their own. Both USG and National Gypsum deny that this happened. According to the article in the NLJ

George Brincku got confirmation from the Massachusetts Institute of Technology that drywall was causing the problems in his home. He sent a drywall sample, a corroded brass corner from a jewelry box, a penny which had been placed in a wall for several days and other objects to Thomas W. Eagar, an MIT metallurgy professor.

The conclusion wasn’t pretty. Eagar found evidence that gases created an acidic condition. The analysis of the Brinckus’ wallboard indicated a composition of half gypsum and half cellulose. An exemplar wallboard should be 100 percent gypsum.

Curiously, back in early January when I started blogging on this story, Adam Minter from Shanghai Scrap left the following comment:

I’m aware that in some parts of south China the environmental authorities have signed off on the use of plastic e-waste as a constituent in drywall. Now, there’s no reason to believe – prima facie – that there’s anything hazardous about plastic e-waste (basically, fiberglass), but one wonders about how the waste is transformed in the drywall manufacturing process. In any event, I’m guessing that the drywall plant isn’t ISO 9000.

It continues …
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For the trail on this story, go here.

Drywall produced by Knauf Tianjin Plasterboard Co. Ltd. — one of the problematic manufacturers identified so far — made it to the inland town of Sebring, about 90 miles east of Sarasota in Highlands County, the Herald-Tribune has confirmed. Meanwhile, a national consumer advocacy group is claiming that the scope is much broader. The Washington, D.C.-based America’s Watchdog, which is partnering with high-powered attorneys across the country, says that its own investigation has found defective Chinese drywall in Florida, Arizona, Colorado, Georgia, Louisiana, Maryland, Nevada, New Jersey, New Mexico, North and South Carolina, Virginia and Texas.

“We think this could literally turn out to be the worst case of sick houses in U.S. history,” said Thomas Martin, the organization’s president.

The Herald-Tribune reported on Feb. 1 that shipping records show at least 550 million pounds of Chinese drywall has been offloaded at U.S. ports since 2006 — enough to build 60,000 average-size homes.

On another sour note, the Palm Beach Post is reporting that two federal agencies are being asked to look into the problem: Senator seeks Chinese drywall probe

U.S. Sen. Bill Nelson, D-Fla., is asking the Environmental Protection Agency and the Consumer Product Safety Commission to investigate whether Chinese-manufactured drywall is toxic.

The wheels on this bus just keep going round-er and round-er. Bigger and faster too. The estimates of the volume of imported Chinese drywall is also on the increase too, up from estimated 36,000 homes, as I posted 11 days ago, to 60,000 homes.

There are now 20 builders who have been fingered for using it, at least one of whom has already filed Chapter 11:

WCI believes that drywall manufactured in China may have been installed in certain portions of some homes that were built and sold prior to our Chapter 11 filing,” said Connie Boyd, WCI’s customer communication director. “We are aware of and have reviewed reports alleging that some of these drywall products may emit an odor and are associated with certain other issues.

How much possible defective drywall are we talking about? Actually, enough to build 36,000 homes:

The Florida health department’s list of complaints has grown to 75 homes, spread across 12 counties. Manatee topped the list with 23. Sarasota has nine; Charlotte one. The list could grow considerably. A Herald-Tribune analysis of shipping records found that the Chinese-made drywall imported into Florida since 2006 was enough to build 36,000 homes.

I get the feeling that if this were more melamine and dead pets, we’d be hearing a lot more about it than we are.
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Other Links:
Is Chinese Drywall the New Mold?

Residents inhabiting a dozen Southwest Florida homes are being relocated so the builder, Lennar Homes, can rip out Chinese drywall that corrodes interior fixtures and may cause long-term health hazards.

Lennar is paying all costs of relocation for the residents, including lodging, and some have already moved, according to a statement from Darin McMurray, Lennar division president.

In addition, Lennar Homes has identified 80 of its homes in Southwest Florida that appear to contain the suspect drywall and is investigating 40 more, McMurray said.

Large residential construction companies wouldn’t be taking these steps if the problems weren’t real.  This story continues to develop.

From the Sarasota Herald-Tribune:

MANATEE COUNTY – As the investigation into toxic Chinese drywall continues, a single street in Manatee County appears to be ground zero for the largest cluster of problem homes.

Within the Lighthouse Cove subdivision of Lennar’s Heritage Harbour development, sits a quaint street of two-story homes called Montauk Point Crossing. Today, it is a virtual ghost town.
At least six families have already moved out of their homes, either at Lennar’s expense or their own. At least two more are planning their exits as soon as possible.

The residents, many with small children, are experiencing an outbreak of the same chronic symptoms — respiratory problems, painful sore throats, headaches and nosebleeds — which they attribute directly to the drywall chemicals filling their homes.

More links:
Concern about drywall grows
Drywall problems could lead to new laws

The company is conducting a thorough investigation and cooperating with builders that have contacted it. Studies and testing by nationally recognized experts are ongoing.  The testing has confirmed that copper has blackened and may be caused by low levels of naturally occurring sulfur gases. The low levels of gases do not present a health risk to persons within the residences.

Knauf Tianjin is assessing remedial options to correct conditions that are identified with respect to its plasterboard, with the least intrusion for homeowners.  The company remains committed to the health and safety of the ultimate consumers of its products in the construction industry.

From today’s (January 15, 2009) the News-Press, Fort Myers, FL, Cape Coral drywall comes up clean:

Knauf claims the Tianjin product is made from natural, not synthetic gypsum and the drywall that causes corrosion is unmarked and comes from another, unknown Chinese manufacturer.

The Tianjin drywall is safe, the company said.

However, health standards are only for eight hour-exposure in the workplace, not residential or chronic exposure, health officials say.

There seems to be some confusion here concerning health standards, and now there is an “unknown Chinese manufacturer” in the mix.
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Regarding the concern over drywall in three schools and two public facilities in Cape Coral, here, all were checked for tainted Chinese drywall and were found to have used drywall from North America.