TEXAS (From news reports) -- Gov. Greg Abbott announced that USG Corporation will build a new production facility in Orange, Texas, a project designated as qualified under the Texas Jobs, Energy, Technology, and Innovation program.

The building materials manufacturer plans to invest $1.175 billion over the life of the project and create nearly 200 jobs, according to the governor's office. The company's initial investment in the Orange facility is $650 million.

"Texas is where businesses invest and grow for the future," Abbott said in a May 14 statement. "This Texas-sized investment by USG will create jobs for hardworking Texans in Orange and across East Texas. I congratulate USG on expanding their 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 produces building materials and solutions for residential and non-residential repair and remodeling. The company cited the state's business climate and the regional manufacturing workforce as reasons for choosing Texas.

USG Corporation CEO Chris Macey said the project reflects a long-term commitment to Southeast Texas.

"USG is grateful for Governor Abbott's leadership and for the partnership of other state and local officials who helped make this project possible," 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 hundred-year-old roots in Texas that include manufacturing operations in Sweetwater, Dallas, and Galena Park, and reflects our continued commitment to our customers' success and the state's prosperity."

State Sen. Robert Nichols (R-Jacksonville) and state Rep. Dade Phelan (R-Orange) both praised the announcement.

Nichols offered congratulations to USG and Orange County, adding, "These investments in our communities demonstrate how Texas continues to lead in job creation and economic development."

"This $1.175 billion ... investment and the nearly 200 new jobs it brings will make a real difference for Orange County families and the entire region," Phelan said. "I'm proud that the JETI program is helping make projects like this possible, and I look forward to seeing this facility become a cornerstone of our local economy for generations to come."

Orange Mayor Larry Spears Jr. thanked Abbott and the Texas Economic Development & Tourism Office for support in repurposing a former paper mill site for the new plant.

Orange County Judge John Gothia said the project is structured as a partnership with Little Cypress-Mauriceville Consolidated Independent School District through the JETI program.

Little Cypress-Mauriceville CISD Superintendent Stacey Brister said the district plans to align its educational programs with workforce needs tied to the facility.

"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," she added.

The JETI program was created after Abbott signed House Bill 5 into law following the 88th Regular Legislative Session. The program is designed to attract large, capital-intensive economic development projects while requiring reporting and transparency measures.

"The JETI Act allows a company, school district, and the Governor's Office to enter into an agreement for a 10-year school district maintenance and operations (M&O) tax appraised value limitation of 50%, based on qualifying job and capital investment minimums. Projects located in qualified Opportunity Zones are eligible for an additional 25% limitation on taxable value," the governor announced in a press release last year.