Mexican tissue manufacturer plans $400 million facility in the U.S.

Grupo Corporativo Papelera is purchasing approximately 32 acres in East Montgomery Industrial Park in New Caney for a new tissue manufacturing and converting facility.

The Mexican toilet paper manufacturer, based in Tepetlaoxtoc, outside Mexico City, launched its US arm, GCP Paper USA, in 2021 and since then has leased a 235,845-square-foot building at the Interwood Distribution Center.

The new Montgomery County facility marks an expansion of its US operations. This is the company’s first expansion outside Mexico. The city was chosen for its port, proximity to Mexico and large number of Hispanic business leaders and entrepreneurs.

According to Angel Jimenez, COO of GCP Paper USA, the current facility is used to convert paper into finished products, while the new plant will be capable of doing the entire process, starting with papermaking.

GCP employs 58 workers at its existing Greater Houston facilities and plans to consolidate all operations into the future plant.

The company anticipates spending $400 million for its development in the County, which will include manufacturing, conversion and warehouse buildings. The facility is currently in the design phase and construction will begin within 18 months of the land purchase – which is expected to take place next month.

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.

According to Jimenez, GCP opened its arm in the United States as a result of the increased demand for toilet paper during the Covid-19 pandemic and the decision to expand comes as the company increases its customer base in the country.

The company produces private label toilet paper and other tissue paper products. Its current customers include retail giants Walmart, H-E-B and Fareway.

GCP intends to open more facilities in the United States.