Dive brief:
- USG Corp., a maker of drywall and other building materials, will invest $1.18 billion to build a production facility in Orange, Texas, Gov. Greg Abbott announced Thursday.
- The Chicago-based company plans to make an initial investment in the $650 million project and expects to create nearly 200 jobs, according to a news release. No construction or operating schedule was disclosed.
- The investment expands USG’s manufacturing footprint in Texas, where the company has facilities Dallas, Galena Park and Sweetwater. It is a qualified project under Texas Employment, Energy, Technology and Innovation program, which was created in 2024 to attract new jobs and investment to the state.
Diving knowledge:
USG, the maker of Sheetrock drywall, Durock tile backing and other gypsum-based products, has been in talks to expand into Orange for more than a year. The city had cleared the way for the company to take over a shuttered international paper mill, rezoning the land in 2024 and approving incentives in early 2025. local ABC affiliate 12NewsNow informed Almost 500 people lost their jobs when the mill closed.
The construction of the USG facilities was established start in autumn 2025 and will be operational in early 2028, according to the city’s Facebook post on January 29, 2025.
What happened between then and now is unclear. Mayor Larry Spears and USG did not immediately respond to requests for comment.
“This new plant builds on our century-old roots in Texas” and “reflects our continued commitment to the success of our customers and the prosperity of the state,” USG CEO Chris Macey said in a statement Thursday.
The Orange project benefited from financial incentives through the JETI Act. The act allows a company, a school district and the governor’s office to enter into an agreement to 10-year school district maintenance and operation tax 50% assessed value limitation, based on capital investment and skilled labor minimums, according to the governor’s office website. Projects located in qualified opportunity zones are eligible for an additional 25% limitation on taxable value.
USG partnered with the Little Cypress-Mauriceville Consolidated Independent School District through the JETI program on this investment. District Superintendent Stacey Brister called it a “tremendous opportunity” for workforce development and training in Orange.
“We are committed to preparing our students with the skills, experiences and mindset needed to succeed in high-demand careers, and we look forward to working together with USG to build a strong, future-ready workforce for our region,” Brister said in a statement.
On April 28, Orange city council members voted unanimously to change the construction deadline for a Chapter 312 tax abatement agreement to 80% in a period of 10 years for the USG project.
USG what founded in 1902 through a merger of 30 independent gypsum and plaster companies, according to its website. He would later use his Sheetrock to build exhibits at the Chicago World’s Fair in the 1930s, and eventually to expand its operations and product offerings to serve the Canadian, Mexican and Caribbean markets. Germany-based Knauf Group acquired USG in 2019 to expand its presence in North America.
USG currently has more than 70 localities and employs 8,500 people, including more than 40 manufacturing plants in the United States, according to its website.
