GCP Paper Secures Financing for New Manufacturing Facility

News Summary

GCP Paper has successfully secured financing for a substantial new manufacturing facility in New Caney, Texas. Covering 565,765 square feet, the site will enhance the company’s operational presence in the U.S. and is expected to generate significant local employment opportunities. Construction is set to start in mid-2025, with completion projected for summer 2026. This investment is poised to bolster both GCP Paper’s manufacturing capabilities and the local economy.

Construction Financing Secured for Major GCP Paper Manufacturing Facility in New Caney, Texas

CBRE has successfully arranged construction financing for a significant manufacturing project that stands poised to transform the landscape of New Caney, Texas. The project, which is designed to cater to GCP Paper’s operational needs, covers an expansive total area of 565,765 square feet and is situated on a 32-acre site within the East Montgomery Industrial Park.

Key Features of the New Facility

This development is custom-built for GCP Paper, a Mexican company that specializes in a range of essential paper products such as toilet paper, facial tissue, and paper towels. The new facility will consist of two interconnected single-story structures, thoughtfully designed to include both an office/production warehouse and a mill building.

The office/production warehouse will be equipped with dock-high loading bays and constructed with concrete tilt-wall panels, ensuring durability and efficiency in operations. Such construction techniques are intended to provide a functional and sustainable workspace for employees and streamline the manufacturing process.

Timeline and Employment Impact

Construction on this facility began in June 2025, and it is expected to reach completion by summer 2026. Once operational, the project promises to create substantial employment opportunities within the local community, boosting the economy and providing job stability for numerous residents.

Financial Aspects and Development Team

The financing for the project was structured with a loan-to-cost ratio of 80%, showcasing a robust financial commitment to bringing this major facility to fruition. The financing was facilitated by John Fenoglio and Brock Hudson of CBRE through Cadence Bank on behalf of GCP Paper.

Responsible for the development and construction of the project is Pontikes, a notable name in the construction industry. Their expertise in undertaking large-scale developments makes them a fitting choice for this major manufacturing project.

Strategic Importance of the Facility

As GCP Paper’s flagship location in the United States, this facility not only enhances their operational capabilities but also establishes a crucial foothold in the U.S. market. GCP Paper has a well-established reputation as Mexico’s market leader in private label paper products, and this expansion underscores their commitment to growth and innovation in the paper manufacturing sector.

Industry Context and Future Events

The broader implications of this construction project align with ongoing trends in the real estate and manufacturing sectors. Upcoming real estate conferences in cities like Kansas City, Houston, and Phoenix are expected to highlight market trends and offer valuable networking opportunities for industry professionals. Such gatherings will be essential for discussing advancements and future directions within the construction and manufacturing industries.

In conclusion, the new GCP Paper manufacturing facility in New Caney, Texas is much more than just a construction project; it is a strategic move that promises to create jobs and foster economic growth in the region. With its modern design and efficient operations, the facility is set to become a cornerstone of the local economy while enhancing GCP Paper’s presence in the U.S. market.

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