The company said today it would suspend production at its plants at Fontana in California, and Summerville in South Carolina.
To maintain supply to markets on the US east coast, James Hardie will increase production at its plant at Pulaski in Virginia.
James Hardie chief executive Louis Gries said the continuing decline in the US housing market had led to reduced capacity utilisation at the company's American plants.
"Although the business continues to run well, current and projected market demand cannot support our current plant network,'' Mr Gries said.
The Fontana and Summerville had been running at reduced operating levels since the market downturn.
The Summerville plant would re-open when market demand returned to acceptable levels.
"During the shutdown, the appropriate future product mix for the plant will be determined, potentially incorporating some of the company's newer differentiated products,'' Mr Gries said.
He said the decision to suspend production affects 67 people at Summerville and 60 at Fontana.
James Hardie will not be booking impairment charges against the closures as it intends to reopen both plants when market conditions permit.
James Hardie shares were 17 cents higher at $4.99 today.
GM to lay off 1,600 at 3 plants to cut inventory
Share market plunges in early trade
Whirlpool will cut jobs, close Jackson plant
