Posted on 07/13/2009 11:20:34 AM PDT by BGHater
Lennar Corp. has identified 400 homes in Florida that have confirmed problems with defective Chinese drywall, and it has set aside $39.8 million to repair the homes, the Miami-based home builder said in a securities filing Friday.
The figures are as of May 31, Lennar said.
Complaints about odors and corrosion linked to defective drywall have been increasing for months.
The U.S. Consumer Product Safety Commission said in a letter to four U.S. Senators last week that it has received more than 600 complaints related to the drywall issue from 21 states and the District of Columbia. Most of the reports are from Florida, Louisiana and Virginia.
Lennar and some other builders have been forced to gut homes, mostly built in 2006 and 2007, to replace drywall, wiring and other fixtures.
Lennar said that it hasn't yet found defective Chinese drywall in homes it built outside of Florida and that it isn't yet able to "reasonably estimate its future exposure" to the problem, which has led to a spate of lawsuits against drywall suppliers and builders.
The builder said it has a $20.7 million receivable for covered damages under its insurance policies.
Lennar said it is seeking reimbursement from subcontractors, insurers and others for costs the company expects to face in investigating the problems and repairing damaged homes.
Drywall, also known as wallboard, is made from gypsum coated with paper and is used in walls and ceilings.
The CPSC said recently that staff members who have visited some of the homes noted odors and metal corrosion inside the homes.
"While in the homes, they also consistently experienced some throat irritation, scratchy eyes, headache and other symptoms that tended to clear up or dissipate after some time outside the homes," the agency said.
(Excerpt) Read more at online.wsj.com ...
It amazes me that we got to the point where imported drywall was cheaper than drywall made here.
I'm glad I live in a house old enough not to have drywall at all, and it was build with old growth wood so no warpage , etc., it's great, feels like a castle compared to the newer Barbie doll construction.
It's really amazing when you consider that drywall is very heavy, and costs a fortune to ship.
Nah. There was a drywall shortage from domestic suppliers because of the building boom and hurricanes tearing up stuff. Most of the bldgs. w/ problem drywall were built 2005-2006.
I have one for ya.. It was cheaper, and quicker, for the furniture manufacturer to ship Canadian lumber to China and have it assembled there and shipped back here.
I have no problem with the quality either but knowing what I know about international transportation and fees, duties etc.. I find it difficult to believe that there is not a place in the US that can be competitive at their volume.
Only 400?
They must not be counting all the houses that in in foreclosure.
Defective Chinese drywal -—and no doubt put up by illegals at a lower wage. Really Nice of Lennar Corp to safe a few bucks so they can sell junk at a profit.
Globalist pay attention...US products may have a higher price but they COST less ( if you don’t know the difference go back to econ 101)
Guess we still haven't gotten the picture, yet. Chinese "goods" are dangerous and bad for America.
Friends at US Gypsum once told me that costs also include settlements of lawsuits as well as availability of the mineral. Although 2/3 of US consumption is domestic sources out west as well as in Iowa and Ohio, other sources include Canada, Mexico, Spain and China.
In addition to wallboard, gypsum is also used as a soil amendment and concrete additive. The James Hardie Company (manufacturers of Hardieplank siding) owns one of the largest gypsum mines in Idaho. It’s not likely they would sell the raw mineral to competitors for a low price.
God help US!
Low-cost shipping has made the world a global market.
I'll bet a lot of homes in the New Orleans area now have this Chinese drywall in them. Lots of residences only had a few inches of water, but it was enough to wick up into the walls a foot or more. Usually, the bottom four feet were removed at the tape joint.
I’d like to know what is in the Chinese drywall that causes metal to rust and soot to form on copper.
My guess would be hydrogen sulfide gas...sulfur.
Before we got town water on our road our water was from our own private well which was just awful due to sulfur. It ate up anything copper or silver in the house. Pipes, switches, you name it. It even destroyed the cooling system of a refrigerator.
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