Mexican tissue paper manufacturer Grupo Corporativo Papelera (GCP) is purchasing 32 acres in the East Montgomery Industrial Park in New Caney, Texas, the Houston Business Journal reported.
The estimated $400 million facility will serve as the site for the company's new manufacturing and conversion facility, marking an expansion of its operations in the United States, the news outlet reported.
GCP Paper USA, the manufacturer's United States arm, has been operating a tissue converting plant since 2022 in a rented 236,000-square-foot building in Houston, Texas.
Strong demand for tissue products, especially toilet paper, prompted GCP's decision to expand its operations in the U.S.
The company employs 58 workers at its existing Greater Houston facilities, and the company plans to consolidate all operations into the new, expansive facility upon completion.
Construction is expected to begin in the next 18 months, once the sale closes.
It is contingent upon an agreement with the East Montgomery County Improvement District, which remains to be signed. The agreement stipulates that the project must be completed within five years and generate 200 permanent job opportunities in exchange for incentives including funds for infrastructure improvements and discounted real estate costs.
Financial details of the agreement weren't reported.
TAPPI
http://www.tappi.org/