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James Hardie Industries, a leading provider of exterior home and outdoor living solutions, is closing its manufacturing plants in Fontana, Ca., and Summerville, S.C., within the next 60 days. The closures are among steps the company is taking to optimize its manufacturing footprint as part of its ongoing commitment to operational excellence through the Hardie Operating System (“HOS”).
The Fontana site’s Innovation and Research & Development functions will remain in operation. The two sites’ manufacturing operations, which represent approximately 6% of the company’s year-to-date North American volume, will be absorbed by other facilities.
CEO Aaron Erter said, “During the past several years, James Hardie has made significant investments in modernizing our manufacturing facilities to improve efficiency, support our material conversion opportunities, and to better serve our customers. Following a comprehensive review of our manufacturing network, we have decided to transfer more production volume to our modern, advanced plants. These actions will further improve our cost structure, increase productivity, and reinforce the Hardie Operating System, while ensuring we have the capacity needed to support our growth initiatives. Our focus remains on driving sustainable growth and value creation over the long term.”
Erter continued, “The decision to close our plants in Fontana, Ca., and Summerville, S.C., was not taken lightly, and I want to thank the teams at these sites for their years of dedication and hard work. We are grateful for their many contributions, which have been significant in shaping James Hardie.”
The company expects the site closures and optimization initiatives to generate annualized cost savings of approximately $25 million beginning in the first quarter of fiscal year 2027. These cost savings will be driven by reduced fixed costs and improved utilization across the remaining manufacturing network, and are incremental to any cost synergy savings related to the recent AZEK acquisition.
The company expects to incur one-time pre-tax charges of approximately $40 million to $44 million, in connection with the site closures and optimization actions. These charges are expected to consist primarily of employee severance, benefits and transition-related costs, contract termination, and facility exit costs, as well as asset impairments and other non-cash charges.
The one-time pre-tax charges are expected to be recognized primarily in the fourth quarter of fiscal year 2026, split approximately evenly between cash and non-cash items. Further information will be shared on the Company’s upcoming third quarter earnings call.
James Hardie Industries plc is the industry leader in exterior home and outdoor living solutions, with a portfolio that includes fiber cement, fiber gypsum, and composite and PVC decking and railing products. Products offered by James Hardie are engineered for beauty, durability, and climate resilience, and include trusted brands like Hardie, TimberTech, AZEK Exteriors, Versatex, fermacell and StruXure. With a global footprint, the James Hardie portfolio is marketed and sold throughout North America, Europe, Australia and New Zealand.
