Eagle Materials Inc. (NYSE: EXP) has announced plans to invest $330 million in modernizing and expanding its gypsum wallboard plant in Duke, Oklahoma. The expansion is expected to increase the plant's annual wallboard manufacturing capacity by 25%, or 300 million square feet, to approximately 1.5 billion square feet. With further investment in the future, the capacity could expand to a total of 2.0 billion square feet.
The modernization project will involve upgrading the facility with state-of-the-art technology to increase operating efficiencies, simplify maintenance programs, and reduce natural gas usage, resulting in manufacturing cost savings of almost 20%. The company expects construction to begin immediately, with startup scheduled for the second half of calendar year 2027.
American Gypsum, a wholly-owned subsidiary of Eagle Materials Inc., currently operates five gypsum wallboard plants and is the nation’s 5th largest producer of gypsum wallboard.
Eagle Materials Inc. is a leading U.S. manufacturer of heavy construction products and light building materials. The company's primary products, including portland cement and gypsum wallboard, are essential for building, expanding, and repairing infrastructure across America. Eagle manufactures and sells its products through a network of more than 70 facilities spanning 21 states.
The expansion project in Oklahoma is expected to not only increase capacity but also reduce operating costs and capitalize on nearby natural gypsum reserves. This strategic move aims to enhance the company's low-cost producer position in the wallboard industry and better serve customers in high-growth markets. As a result of these announcements, the company's shares have moved 0.05% on the market, and are now trading at a price of $234.56. For the full picture, make sure to review E's 8-K report.
