The Daily Dig
USG Corporation, the Chicago-based manufacturer behind Sheetrock drywall, Durock tile backer, and a broad line of gypsum-based products, is building a new production facility in Orange, Texas. The project carries an initial investment of $650 million and a total committed investment of $1.175 billion over the life of the project. Nearly 200 jobs are expected to be created. Governor Greg Abbott announced the project as a qualified project under the Texas Jobs, Energy, Technology, and Innovation (JETI) program.
The facility will be built on the site of a former International Paper mill that closed and left nearly 500 people out of work. The City of Orange rezoned the property in 2024 and approved incentives in early 2025 to clear the way for USG. A city Facebook post from January 2025 indicated construction was set to begin as early as fall 2025, with operations targeted for early 2028. What has happened with that timeline between then and the formal JETI announcement is unclear. Neither Mayor Larry Spears nor USG responded to requests for comment on the gap.
USG has been manufacturing in Texas for over a century, with existing plants in Dallas, Galena Park, and Sweetwater. The Orange facility adds a fourth manufacturing location in the state. The Knauf Group, a Germany-based building materials company, acquired USG in 2019. According to USG, the company operates more than 40 manufacturing plants in the United States and has more than 70 locations across the United States, Canada, and Latin America, with 8,500 employees.
As part of the JETI program, USG partnered with Little Cypress-Mauriceville Consolidated Independent School District. The JETI Act allows a company, school district, and the governor's office to enter into a 10-year school district maintenance and operations tax appraised value limitation of 50%, based on qualifying job and capital investment minimums. On April 28, 2026, Orange City Council unanimously voted to amend a Chapter 312 tax abatement agreement at 80% over a 10-year period for the project.
Snapshot:
Company: USG Corporation
Parent Company: Knauf Group (Germany, acquired 2019)
HQ: Chicago, Illinois
Project Type: New production facility
Key Products: Sheetrock drywall, Durock tile backer, gypsum-based products
Location: Orange, Texas
Region: Southeast Texas
Sector: Building materials manufacturing
Site: Former International Paper mill (shuttered; sourced via local news reporting)
Site Prep: Rezoned by City of Orange 2024; incentives approved early 2025
Initial Investment: $650 million
Total Investment (Project Life): $1.175 billion
Jobs Created: Nearly 200
Construction Start (Projected): Fall 2025 (per Jan. 2025 city post; current status unconfirmed)
Target Operations: Early 2028 (per Jan. 2025 city post; current status unconfirmed)
Program: Texas JETI (Jobs, Energy, Technology, and Innovation)
JETI Structure: 10-year school district M&O tax appraised value limitation of 50%, based on qualifying job and capital investment minimums
Tax Abatement: Chapter 312 at 80% over 10 years, approved April 28, 2026
Education Partner: Little Cypress-Mauriceville CISD
Existing TX Plants: Dallas, Galena Park, Sweetwater
U.S. Manufacturing Plants: 40+
Locations (U.S., Canada, Latin America): 70+
Employees: 8,500
TheJobWalk Thoughts
The timeline gap here matters. A January 2025 city post pointed to a fall 2025 construction start and a 2028 operations target, but the formal JETI announcement landed in May 2026 with no updated construction schedule attached. Whether work is already underway or the schedule has shifted, subs and suppliers in Southeast Texas need answers before making capacity commitments around this project.
On a brownfield conversion of this scale, demolition, environmental work, civil, and utility infrastructure typically run before the main facility build gets going, and that early-phase work is often procured on a separate track well ahead of any primary GC announcement. No general contractor has been publicly named on this project. If you are waiting for that announcement before making contact, experience says you may already be behind.
The unanimous April 28 council vote to amend the Chapter 312 abatement agreement tells you the project is actively moving through its municipal commitments. Local government action like that tends to tighten up right before procurement accelerates. That is the signal worth watching.
