USG Plans $1.18B Manufacturing Facility in Orange, Texas
According to Construction Dive, USG Corp. will invest $1.18 billion to build a new production facility in Orange, Texas, with an initial project investment of $650 million and nearly 200 jobs expected, as announced by Gov. Greg Abbott on May 18, 2026.
Market Impact
The Chicago-based maker of Sheetrock drywall, Durock tile backer, and other gypsum products has been pursuing the Orange location for over a year. The city rezoned a shuttered International Paper mill site in 2024 and approved incentives in early 2025 to clear the way for USG. According to a city Facebook post from January 2025, construction was originally set to begin as early as fall 2025, with operations targeted for early 2028, though no updated construction or operational timeline has been disclosed.
The project qualifies under Texas’s Jobs, Energy, Technology and Innovation (JETI) program, which offers a 10-year school district maintenance and operations tax appraised value limitation of 50%. USG partnered with the Little Cypress-Mauriceville Consolidated Independent School District on the investment. “This new plant builds upon our hundred-year-old roots in Texas,” USG CEO Chris Macey said in a statement, adding that it “reflects our continued commitment to our customers’ success and the state’s prosperity.”
The Orange facility expands USG’s existing Texas footprint, which already includes locations in Dallas, Galena Park, and Sweetwater.
What It Means for Subcontractors
- A $1.18 billion industrial build in Orange, TX represents a major pipeline opportunity for Gulf Coast specialty trade contractors, including concrete, structural steel, mechanical, and electrical subs.
- The project will repurpose a former paper mill site, which typically involves significant site prep, demolition, and remediation work before vertical construction begins.
- No construction timeline has been confirmed yet, so subcontractors should monitor procurement announcements closely and position early for bid opportunities.
- The JETI program incentive structure and school district partnership suggest long-term community investment, which could support additional infrastructure and commercial construction in the Orange area.
- With nearly 500 jobs previously lost when the International Paper mill closed, local labor availability may be favorable for contractors hiring in the region.
