Eagle Materials Inc. (NYSE: EXP) has announced plans through its subsidiary, American Gypsum Company, to modernize and expand its Duke, Oklahoma gypsum wallboard plant. This facility is strategically positioned near abundant, low-cost natural gypsum reserves, allowing the company to strengthen its position as a low-cost producer while serving the rapidly growing South and Sunbelt markets.

The $330 million investment will increase the plant’s annual wallboard production capacity by 25%, adding 300 million square feet to reach a total of approximately 1.5 billion square feet. With further moderate investments planned, the plant’s capacity could expand by an additional 500 million square feet, potentially reaching 2 billion square feet.

The expansion project includes installation of advanced manufacturing technology designed to boost operating efficiencies, simplify maintenance, and reduce natural gas consumption. These improvements are projected to cut manufacturing costs by nearly 20%.

Construction is set to begin immediately following the completion of all regulatory approvals, with the upgraded facility expected to be operational in the second half of 2027.

American Gypsum currently operates five gypsum wallboard plants across the U.S. and ranks as the nation’s fifth-largest producer in the sector.

Eagle Materials is a prominent manufacturer of heavy construction products and light building materials, including Portland Cement and Gypsum Wallboard, critical to infrastructure and building projects nationwide. Headquartered in Dallas, Texas, the company operates over 70 facilities in 21 states.

This major investment in Duke, Oklahoma, reflects Eagle Materials’ commitment to supporting growing construction demands in key U.S. regions while maintaining a competitive edge through operational efficiency and cost management.

Originally reported by Business Wire.