James Hardie Industries plc said it will move to reshape its manufacturing network by closing two US manufacturing facilities, as the building materials company pursues efficiency improvements and cost reductions across its operations.
In a media release, James Hardie said its manufacturing plants in Fontana, California, and Summerville, South Carolina will close within the next 60 days.
The company said production from the two sites, which accounts for about 6 per cent of its year-to-date North American manufacturing volume, will be transferred to other facilities in its manufacturing network. James Hardie added that the Innovation and Research and Development functions at the Fontana site will continue operating.
James Hardie Chief Executive Officer Aaron Erter said the decision followed a review of the company’s manufacturing footprint.
“During the past several years, James Hardie has made significant investments in modernising our manufacturing facilities to improve efficiency, support our material conversion opportunities, and to better serve our customers,” Erter said in the company announcement.
“Following a comprehensive review of our manufacturing network, we have decided to transfer more production volume to our modern, advanced plants.”
According to James Hardie, the manufacturing optimisation initiatives are expected to deliver annualised cost savings of about USD 25 million beginning in the first quarter of the 2027 financial year, driven by lower fixed costs and improved utilisation across its remaining manufacturing sites.
The company said these savings are incremental to any cost synergies associated with its recent AZEK acquisition.
James Hardie said it expects to record one-time pre-tax charges of approximately USD 40 million to US$44 million, primarily related to employee severance and benefits, transition-related expenses, contract terminations, facility exit costs and asset impairments.
The company said most of the charges are expected to be recognised in the fourth quarter of the 2026 financial year.
Erter said the company recognised the contribution of employees affected by the closures. “The decision to close our plants in Fontana, California, and Summerville, South Carolina was not taken lightly, and I want to thank the teams at these sites for their years of dedication and hard work,” he said.
The content of this article is based on information supplied by James Hardie Industries plc. For more information, please refer to the official company announcement and communications from James Hardie. Please consult a licensed and/or registered professional in this area before making any decisions based on the content of this article.
