{"id":35467,"date":"2026-05-19T05:13:19","date_gmt":"2026-05-19T12:13:19","guid":{"rendered":"https:\/\/essential.construction\/news\/usg-to-invest-1-2b-in-texas-factory\/"},"modified":"2026-05-19T05:13:19","modified_gmt":"2026-05-19T12:13:19","slug":"usg-to-invest-1-2b-in-texas-factory","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/usg-to-invest-1-2b-in-texas-factory\/","title":{"rendered":"USG to invest $1.2B in Texas factory"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<h3 class=\"standard-heading\"><span><span><span><span><span>Dive Brief:<\/span><\/span><\/span><\/span><\/span><\/h3>\n<ul>\n<li><span><span><span><span><span><span>USG Corp., a maker of drywall and other construction materials, will <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/gov.texas.gov\/news\/post\/governor-abbott-announces-usg-corporation-expansion-in-orange\" target=\"_blank\"><span><span><span><span><span><span><span><span>invest $1.18 billion<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> to build a production facility in Orange, Texas, Gov. Greg Abbott announced Thursday.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>The Chicago-based company plans to make an initial project investment of $650 million, and it expects to create nearly 200 jobs, according to a news release. No construction or operational timeline was disclosed.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>The investment expands USG\u2019s manufacturing footprint in Texas, where the company has facilities in <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.usg.com\/en-US\/about-usg\/locations\/manufacturing-plants#:~:text=Dallas,Sweetwater\" target=\"_blank\"><span><span><span><span><span><span><span><span>Dallas, Galena Park and Sweetwater<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>. It is a qualified project under the Texas <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/gov.texas.gov\/news\/post\/governor-abbott-announces-launch-of-texas-jobs-energy-technology-and-innovation-program\" target=\"_blank\"><span><span><span><span><span><span><span><span>Jobs, Energy, Technology and Innovation<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> program, which was created in 2024 to attract new jobs and investment to the state.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3 class=\"standard-heading\"><span><span><span><span><span>Dive Insight:<\/span><\/span><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>USG, the maker of Sheetrock drywall, Durock tile backer and other gypsum-based products, has been in talks to expand to Orange for over 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, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.12newsnow.com\/article\/news\/local\/power-city\/usg-paper-to-revive-former-international-paper-plant-in-orange\/502-77c8a1a3-9fd0-49a0-ae2d-b8afa6128edd\" target=\"_blank\"><span><span><span><span><span><span><span><span>local ABC affiliate 12NewsNow<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> reported. Nearly 500 people lost their jobs when the mill closed.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Construction of the USG facility was set to <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.facebook.com\/OrangeTexasGov\/posts\/pfbid0TCcgvdLTSpW7xqSW1PGf7GdPGFbK4AeySGrdVw7kGGJ4rxM55hEizgPkNfdadd8hl\" target=\"_blank\"><span><span><span><span><span><span><span><span>begin as early as fall 2025<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>\u00a0and be operational by early 2028, according to the city\u2019s Facebook post on Jan. 29, 2025.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>What happened between then and now is unclear. Mayor Larry Spears and USG did not immediately respond to requests for comment.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThis new plant builds upon our hundred-year-old roots in Texas\u201d and \u201creflects our continued commitment to our customers\u2019 success and the state\u2019s prosperity,\u201d USG CEO Chris Macey said in a statement Thursday.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The Orange project qualified for economic incentives through the JETI Act. The act allows a company, school district and the governor\u2019s office to enter into an agreement for a <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/url.us.m.mimecastprotect.com\/s\/A3KcCXD7MEUG7vKzgh6fDUW2Dyj?domain=gov.texas.gov\" target=\"_blank\"><span><span><span><span><span><span><span><span>10-year school district maintenance and operations tax<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> appraised value limitation of 50%, based on qualifying job and capital investment minimums, according to the governor\u2019s office website.<strong>\u00a0<\/strong>Projects located in qualified opportunity zones are eligible for an additional 25% limitation on taxable value.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>USG partnered with Little Cypress-Mauriceville Consolidated Independent School District through the JETI program on this investment. District superintendent Stacey Brister called it a \u201ctremendous opportunity\u201d for workforce development and training in Orange.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWe are committed to preparing our students with the skills, experiences and mindset necessary to succeed in high-demand careers, and we look forward to working alongside USG to build a strong, future-ready workforce for our region,\u201d Brister said in a statement.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>On April 28, Orange city council members unanimously voted to amend the construction timeline of a Chapter 312 tax abatement agreement at <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/orangetexas.gov\/AgendaCenter\/ViewFile\/Agenda\/_04282026-560\" target=\"_blank\"><span><span><span><span><span><span><span><span>80% over a 10-year period<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> for USG\u2019s project.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>USG was <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.usg.com\/en-US\/about-usg\/history\" target=\"_blank\"><span><span><span><span><span><span><span><span>founded in 1902<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> through a merger of 30 independent gypsum and plaster companies, according to its website. It would later use its Sheetrock to construct Chicago World\u2019s Fair exhibits in the 1930s and eventually<strong> <\/strong>expand<strong>\u00a0<\/strong>its operations and product offerings to serve markets in Canada, Mexico and the Caribbean. The Knauf Group, based in Germany, acquired USG in 2019 to expand its presence in North America.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>USG currently<strong>\u00a0<\/strong>has <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.usg.com\/en-US\/about-usg\" target=\"_blank\"><span><span><span><span><span><span><span><span>more than 70 locations<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> and employs 8,500 people, including more than <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.usg.com\/en-US\/about-usg\/locations\/manufacturing-plants\" target=\"_blank\"><span><span><span><span><span><span><span><span>40 manufacturing plants<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in the United States, according to its website.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/usg-invest-1b-orange-texas-factory-drywall-gypsum\/820474\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Dive Brief: USG Corp., a maker of drywall and other construction materials, will invest $1.18 billion to build a &#8230; <a title=\"USG to invest $1.2B in Texas factory\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/usg-to-invest-1-2b-in-texas-factory\/\" aria-label=\"Read more about USG to invest $1.2B in Texas factory\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-35467","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/35467","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=35467"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/35467\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=35467"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=35467"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=35467"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}