James Hardie Industries PLC has announced it will close its manufacturing facilities in Fontana, California, and Summerville, South Carolina, within the next 60 days. This decision forms part of the company’s broader strategy to optimise its North American manufacturing footprint. James Hardie is a global building materials company, focusing primarily on fibre cement and gypsum building products. The company’s products are used in a wide range of applications, including new home construction, repair and remodelling, and a variety of commercial and industrial applications.
The closures will affect approximately 6 per cent of James Hardie’s year-to-date North American volume. The company intends to absorb the operations of the closing plants into its more modern facilities. However, the innovation and research and development functions currently located at the Fontana site will continue to operate.
James Hardie anticipates that these initiatives will result in annualised cost savings of approximately $US25 million ($37.3 million), commencing in the first quarter of the 2027 financial year. These savings are expected to be realised through lower fixed costs and improved utilisation of the company’s remaining plant capacity. The company expects to incur one-time pre-tax charges of $US40 million to $US44 million, which include costs associated with severance packages, contract terminations, and asset impairments. These charges will be predominantly recorded in the fourth quarter of the 2026 financial year.
Despite the plant closures, James Hardie has reaffirmed its financial guidance for both the third quarter and the full 2026 financial year, indicating confidence in its ongoing performance and the success of its optimisation strategy.
