By Business Journal Staff
Gov. Greg Abbott announced May 14 that a new USG Corp. production facility in Orange has been designated a qualified project under the Texas Jobs, Energy, Technology and Innovation (JETI) program.
USG is expanding its presence in Texas with a new production facility that represents a $1.175 billion investment over the life of the project and is expected to create nearly 200 jobs.
In January, USG announced plans to invest $715 million to expand its paper manufacturing operations in Orange, creating between 120 and 150 new jobs at the former International Paper facility on Old Texas Highway 87. USG purchased the facility in early 2025.
A manufacturer of building materials and innovative solutions for residential and commercial repair and remodeling, USG reportedly selected Texas for the project because of the state’s business climate and the region’s skilled manufacturing workforce.
The company reports making an initial investment of $650 million in the facility.
“Texas is where businesses invest and grow for the future,” Abbott said. “This Texas-sized investment by USG will create jobs for hardworking Texans in Orange and across East Texas. I congratulate USG on expanding its presence and deep roots in Texas. Working together with manufacturing leaders across broad industries, we will build a stronger, more prosperous Texas for decades to come.”
“USG is grateful for Gov. Abbott’s leadership and for the partnership of other state and local officials who helped make this project possible,” USG President and CEO Chris Macey said. “Our investment in this state-of-the-art facility in Orange represents a long-term investment in Southeast Texas — one that will create quality jobs, strengthen the regional economy and help us better serve our customers.
“The USG family is excited to be a part of the Orange community, and we are committed to being a trusted neighbor and employer for decades to come. This new plant builds upon our 100-year-old roots in Texas, which include manufacturing operations in Sweetwater, Dallas and Galena Park, and reflects our continued commitment to our customers’ success and the state’s prosperity.”
State Rep. Dade Phelan said USG’s decision to expand in Orange demonstrates the strengths of Southeast Texas.
“USG’s decision to expand in Orange is a testament to what Southeast Texas has to offer — a skilled workforce, a pro-business environment and a community ready to grow,” Phelan said.
Orange Mayor Larry Spears Jr. congratulated USG, Abbott and the Texas Economic Development & Tourism Office for their efforts in repurposing the former paper mill site.
“The project will create jobs and provide a positive economic impact for the city of Orange and the state of Texas,” Spears said.
“Orange County is proud to support USG’s investment in our community, and we’re excited to see this project bring new jobs and long-term economic stability while revitalizing a former industrial site for continued growth,” Orange County Judge John Gothia said. “This partnership with Little Cypress-Mauriceville Consolidated Independent School District through the JETI program represents a meaningful step forward in creating new opportunities and sustained economic progress for the citizens of Orange County.”
Little Cypress-Mauriceville CISD Superintendent Stacey Brister said the school district is excited to welcome USG to the community.
“This partnership represents a tremendous opportunity to align our educational programs with real-world workforce needs,” Brister said. “We 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.”
Abbott signed House Bill 5 into law following the 88th Texas Legislature’s regular session, creating the JETI program to attract large, capital-intensive economic development projects that bring new investment and create high-paying jobs while ensuring accountability, reporting and transparency.
