The City of Orange has approved a $400,000 economic development grant to support USG Paper, LLC, as it prepares to reopen and expand the former International Paper plant on Texas Highway 87 North. This investment will significantly boost the region’s economy, as USG Paper plans to invest $715 million in the facility and create 120 to 150 new jobs.
The grant, approved by the Orange Economic Development Corporation (EDC) Board of Directors and the Orange City Council, will be distributed over two years. A maximum of $200,000 per year will be designated for infrastructure improvements.
The plant originally opened in 1967 as Owens-Illinois and underwent multiple ownership changes before being acquired by International Paper. In December 2023, International Paper abruptly closed the facility, leading to nearly 500 job losses and a significant economic impact on the community.
Now under new ownership, USG Paper, a subsidiary of United States Gypsum (USG), a leader in wallboard and gypsum products, has committed to revitalizing the plant. The site will produce specialized heavy-gauge paper used in the manufacturing of Sheetrock. The company plans to introduce a state-of-the-art three-ply paper machine, replacing the previous one-ply system, significantly increasing production capacity.
Since the plant’s closure, the Orange City Council and EDC Board, led by Mayor Larry Spears Jr., have been working to attract new investment to the area. The grant was approved during a public meeting, during which USG Paper representatives outlined their vision for the facility.
“We believe that a $400,000 investment from the EDC is an excellent tradeoff for a $715 million project that will bring over 100 well-paying jobs to our city,” said Mayor Spears. “This is a huge win for Orange, and we are excited to see this transformation take place.”
The plant’s reopening is expected to restore property tax revenue for the City of Orange and the Little Cypress-Mauriceville school district, which experienced financial setbacks after International Paper closed.
Project Timeline and Employment Opportunities
- 2025: Construction is expected to begin late in the year.
- 2028: Plant operations are expected to commence.
- Job Creation: USG Paper estimates it will hire between 120 and 150 employees, with an average salary of $81,000 annually.
With USG Paper’s investment, the city’s economy is poised for a significant turnaround. Reopening the plant will create jobs, stimulate business growth, and restore the financial stability lost due to industrial closures.
“This has been a long time coming, and it is truly an answered prayer for our community,” said Mayor Spears. “We are proud to welcome USG Paper to Orange and look forward to the opportunities this brings to our residents.”