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Council approves up to $400,000 EDC incentive to support potential USG paper plant at former IP site
Summary
Council approved an EDC incentive not to exceed $200,000 per year for two years (total up to $400,000) toward eligible infrastructure at the former International Paper site as USG evaluates the property; presenters said the project could mean a $715 million investment and 120–150 jobs.
Orange, Texas — City Council on Jan. 28 approved an economic development incentive package of up to $200,000 per year for two years (not to exceed $400,000 total) from the Orange Economic Development Corporation to support infrastructure improvements at 1750 IP Way while USG evaluates a proposed paper product facility at the former International Paper site.
City and EDC staff introduced Ryan Consulting representative Sean Rooney, who presented high‑level project information. Rooney said the investor is evaluating the property following a purchase of the site and that the potential investment could be substantial: “The investment is expected to be upwards of $715,000,000 over 10 years,” he said. Rooney said the project could create between 120 and 150 jobs with average pay in the $81,000 to $105,000 range including benefits. He described significant equipment and infrastructure needs, including a new paper machine and recycled fiber handling facilities to produce three‑ply paper.
EDC staff described the incentive as targeting site infrastructure improvements needed for successful reuse of the site. Council and staff framed the incentive as supporting a regional economic recovery from the 2023 closure of International Paper; presenters said early rehiring of some IP staff is already underway in evaluation and planning phases. Council voted to approve the EDC motion; the motion passed unanimously.
The incentive is structured as EDC funds for eligible infrastructure; the presentation noted an expected $88,000,000 portion for buildings and additional amounts for equipment and infrastructure across the broader $715 million investment estimate. City leaders emphasized that the incentive is contingent on the company’s due diligence, board approvals and subsequent project commitments; the action does not itself create the jobs or change ownership beyond earlier private transactions.
Council members applauded EDC staff and partners for recruitment work and noted the potential regional impact if the project proceeds. The city’s motion approving the EDC action reflects local economic development support while final project milestones, permitting, and construction timetables remain subject to private and state approvals.
