1. $330 million investment to expand Duke plant capacity by 25%. 2. Modernization will reduce operating costs by nearly 20%. 3. Expansion capitalizes on nearby low-cost natural gypsum reserves. 4. Project completion anticipated in the second half of 2027. 5. American Gypsum is now the 5th largest U.S. producer of gypsum wallboard.
The significant investment and capacity increase could enhance market share and profitability, similar to past expansions in manufacturing that benefited stock prices positively.
The project directly impacts EXP’s capacity and operational efficiency, critical for competitive positioning in the wallboard market.
With operations expected to ramp up in 2027, future growth and efficiencies will materialize long-term, driving value.
DALLAS--(BUSINESS WIRE)-- Eagle Materials Inc. (NYSE: EXP) announced today that its subsidiary company, American Gypsum Company, plans to expand and modernize its Duke, Oklahoma gypsum wallboard plant, which serves customers throughout the South and Sunbelt and is strategically located near decades of low-cost natural gypsum reserves. The project will expand American Gypsum’s ability to serve customers in high-growth markets and enhance its low-cost producer position in the wallboard industry.
Upon completion, the project will increase the plant’s annual wallboard manufacturing capacity by 300 million square feet, or 25%, to approximately 1.5 billion square feet, and will enable, with moderate additional investment in the future, a further 500 million square feet of capacity expansion, for a total of 2.0 billion square feet of manufacturing capacity. The facility will be upgraded with state-of-the-art technology that will increase operating efficiencies, simplify maintenance programs, and reduce natural gas usage, resulting in manufacturing cost savings of almost 20%.
The total project investment is estimated to be $330 million. Planning for the project has been completed, all regulatory approvals have been received, and construction is expected to begin immediately, with startup scheduled for the second half of calendar year 2027.
American Gypsum, a wholly-owned subsidiary of Eagle Materials Inc., presently operates five gypsum wallboard plants and is the nation’s 5th largest producer of gypsum wallboard.
About Eagle Materials Inc.
Eagle Materials Inc. is a leading U.S. manufacturer of heavy construction products and light building materials. Eagle’s primary products, Portland Cement and Gypsum Wallboard, are essential for building, expanding and repairing roads, highways and residential, commercial and industrial structures across America. Headquartered in Dallas, Texas, Eagle manufactures and sells its products through a network of more than 70 facilities spanning 21 states. Visit eaglematerials.com for more information.