Mexican paper manufacturer plans $400M plant near Houston

Grupo Corporativo Papelera is buying 32 acres for a toilet paper manufacturing plant

An aerial East Montgomery County Industrial Park
An aerial East Montgomery County Industrial Park (East Montgomery County Improvement District; Getty)

Industrial real estate is on a roll northeast of Houston.

Mexican toilet paper manufacturer Grupo Corporativo Papelera is purchasing 32 acres in the East Montgomery Industrial Park in New Caney, 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 outlet reported.

GCP Paper USA, the manufacturer’s United States arm, has been operating out of a rented 236,000-square-foot building in the Interwood Distribution Center at 14710 John F. Kennedy Boulevard in Fountain View.  

The decision to expand its operations in the United States arose from the surge in demand for toilet paper during the Covid-19 pandemic. GCP Paper USA has been steadily growing its customer base here, with products in retail giants such as Walmart and H-E-B. 

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. 

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.

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.

Houston serves as GCP’s first expansion location outside of Mexico, and the company is actively exploring opportunities to establish additional facilities in the United States. Greater Houston was selected based on factors such as its port, proximity to Mexico and the significant presence of Hispanic business leaders and entrepreneurs.

Hispanic entrepreneurs account for some 38 percent of small business owners in Greater Houston, according to a report published by the University of Houston in conjunction with the Houston Hispanic Chamber of Commerce. As the metro’s largest ethnic population, the Hispanic community also accounts for roughly 25 percent of total spending power. 

Read more