James Hardie Industries (ASX:JHX) announced plans to optimise its manufacturing footprint by closing its facilities in Fontana, California, and Summerville, South Carolina within the next 60 days, as part of its ongoing operational excellence initiatives under the Hardie operating system.
The company said production from the two sites—representing about 6% of year-to-date North American volume—will be absorbed by other, more modern plants, while the Fontana site's innovation and research and development functions will continue to operate.
The optimisation is expected to generate annualised cost savings of approximately $25 million beginning in the first quarter of fiscal year 2027, driven by reduced fixed costs and improved utilisation, and is incremental to synergies from the recent AZEK acquisition.
James Hardie anticipates one-time pre-tax charges of $40 million to $44 million, largely related to severance, transition, contract termination, facility exit costs, and asset impairments, primarily to be recognised in the fourth quarter of fiscal year 2026.
The company also reaffirmed its guidance for the third quarter and full fiscal year 2026.