James Hardie Announces Manufacturing Footprint Optimization
James Hardie Industries plc (NYSE / ASX: JHX), a global leader in exterior home and outdoor living solutions, has announced plans to optimize its manufacturing footprint as part of its ongoing commitment to operational excellence under the Hardie™ Operating System (HOS). The initiative is designed to enhance efficiency, improve cost structure, and support the Company’s long-term growth strategy.
Planned Closure of Two Manufacturing Facilities
As part of this optimization effort, James Hardie will close its manufacturing facilities in Fontana, California, and Summerville, South Carolina within the next 60 days. Together, these two plants account for approximately 6% of the Company’s year-to-date North American production volume.
Manufacturing output from these locations will be transitioned to other facilities within the Company’s network, ensuring continuity of supply and service for customers. Importantly, the Innovation and Research & Development operations at the Fontana site will continue, preserving a key hub for product development and innovation.
Strategic Shift to Modern, Advanced Plants
Commenting on the decision, Chief Executive Officer Aaron Erter highlighted the Company’s strategic focus on modernization and efficiency.
Over the past several years, James Hardie has made substantial investments in upgrading our manufacturing facilities to improve efficiency, support material conversion opportunities, and better serve our customers,” Erter said. “Following a comprehensive review of our manufacturing network, we determined that transferring additional production volume to our modern, advanced plants is the right step forward.
He added that these actions will further strengthen the Hardie Operating System by improving productivity, lowering costs, and ensuring the Company has sufficient capacity to support future growth initiatives.
Appreciation for Employees at Closing Sites
Erter emphasized that the decision to close the Fontana and Summerville facilities was made with careful consideration.
This was not a decision taken lightly,” he said. “I want to sincerely thank the teams at both sites for their years of dedication and hard work. Their contributions have played an important role in shaping James Hardie, and we are deeply grateful for their commitment.
Financial Impact and Expected Cost Savings
James Hardie expects the manufacturing optimization actions to generate annualized cost savings of approximately $25 million, beginning in the first quarter of fiscal year 2027. These savings are expected to come from reduced fixed costs and improved utilization across the remaining manufacturing network.
The anticipated savings are incremental to any cost synergies related to the Company’s recent AZEK acquisition, further strengthening the Company’s financial position.
One-Time Charges Related to Optimization
The Company also expects to incur one-time pre-tax charges of approximately $40 million to $44 million in connection with the site closures and related optimization actions. These charges will primarily include employee severance and benefits, transition-related expenses, contract termination costs, facility exit costs, asset impairments, and other non-cash items.
James Hardie expects these charges to be recognized mainly in the fourth quarter of fiscal year 2026, with the costs split roughly evenly between cash and non-cash items. Additional details will be provided during the Company’s upcoming third-quarter earnings call.
FY26 Guidance Reaffirmed
In conjunction with the announcement, James Hardie reaffirmed its third-quarter and full-year fiscal 2026 guidance, which was originally issued on November 18, 2025, alongside its second-quarter earnings results.
About James Hardie Industries
James Hardie Industries plc is a global industry leader in exterior home and outdoor living solutions. Its extensive product portfolio includes fiber cement, fiber gypsum, and composite and PVC decking and railing systems. The Company’s products are engineered for beauty, durability, and climate resilience.
James Hardie’s trusted brands include Hardie®, TimberTech®, AZEK® Exteriors, Versatex®, fermacell®, and StruXure®. With a strong global footprint, the Company markets and sells its products across North America, Europe, Australia, and New Zealand.
James Hardie Industries plc is incorporated in Ireland and operates under the Irish Companies Act. Its principal executive offices are located in Dublin, Ireland.
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