USG Corporation will spend $1.2 billion to build a new factory in Orange, Texas. According to a May 14 statement from the Texas governor’s office, the expansion will add production capacity for the construction materials company’s gypsum sheetrock and drywall business and create 200 jobs.

The project is supported by the Texas Jobs, Energy, Technology and Innovation (JETI) economic investment program, the governor said in a statement. The state law allows companies and school districts to agree with the state for a tax appraised value limitation of 50%, or 75% in “qualified Opportunity Zones.” The initial 50% limitation is based on qualifying job and capital investment minimums. The governor’s office did not disclose how much the JETI program would save USG on its new facility or if said facility is being built in a qualified opportunity zone.

In a statement, USG Corp. CEO Chris Macey said the company plans to remain in Orange for the foreseeable future, and the new site will add to the company’s existing Texan locations in Sweetwater, Dallas, and Galena Park.

“USG is grateful for Governor Abbott’s leadership and for the partnership of other state and local officials who helped make this project possible,” said USG Corporation CEO Chris Macey. “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.”

“Texas is where businesses invest and grow for the future,” said Gov. Abbott. “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.”

“Congratulations to USG and Orange County,” said Senator Robert Nichols. “There is so much happening in East and Southeast Texas to be excited about. These investments in our communities demonstrate how Texas continues to lead in job creation and economic development.”