Wallboard manufacturer closes plant

American Gypsum, a subsidiary of Eagle Materials, has announced it will close its wallboard facility in Bernalillo, N.M. The shutdown will affect 70 workers and reduce the company’s output by approximately 475 million sq. ft., approximately 15% of its U.S. capacity.

The company blames the closure on the severe downturn in the U.S. home-building industry, coupled with limited prospects for a quick recovery in Southern California, Southern Nevada and Arizona. American Gypsum will continue to operate a plant in Albuquerque, N.M. Other American Gypsum facilities are located in Oklahoma, Colorado and South Carolina.

Based in Dallas, American Gypsum is a subsidiary of Eagle Materials (NYSE: EXP), a manufacturer and distributor of cement, gypsum wallboard, recycled paperboard, concrete and aggregates in 25 facilities across the United States.