The Real Deal Miami

Drywall settlement could cost Chinese firm $1B

December 16, 2011 04:57PM

The end is near for the Chinese drywall saga that hit the Southeast last year, and Florida in particular, as manufacturer Knauf, and its Chinese affiliate, Knauf Plasterboard Tianjin, agreed to a settlement that would provide cash to replace drywall in affected homes.

According to NBC Miami, the settlement will cost between $600 million and $1 billion as the company will cover the costs to repair all 4,500 houses affected, 55 percent of which are in Florida.

The drywall Knauf installed has a foul odor, can cause health problems and corrodes wiring and metal in appliances. The plaintiffs’ attorneys, who previously rejected a $53 million settlement said that Knauf knew the drywall was defective but didn’t tell customers. [NBC Miami]