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Tue, Aug 9, 2022 13:26
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CGC announces $210 million investment to build state-of-the-art wallboard manufacturing plant in Alberta

CALGARY, AB (News release) -- CGC Inc., the Canadian division of USG Corporation, announced plans to build a new, state-of-the-art wallboard manufacturing plant in Wheatland County, Alberta. This CAD 210 million investment reinforces CGC's commitment to the Canadian market and will allow CGC to better serve its valued customers in Alberta and the West. Construction on the plant is projected to begin in 2023.

"Our customers in Western Canada have said they want a more efficient way to access our CGC wallboard products they've been buying for over 100 years. Shipping our products from Eastern Canadian or American manufacturing plants no longer meets their growing demand," said Chris Griffin, President and CEO of USG Corporation. "Which is why I am thrilled to announce our plans for a brand new CGC wallboard plant in Wheatland County, Alta.--a cutting-edge facility that will deliver our industry-leading Sheetrock® brand wallboard to our customers across Western Canada, helping them build faster, smarter and more sustainably."

Public-private partnership to generate economic growth in rural Alberta

Today's announcement is the result of close collaboration between CGC, Wheatland County, the Government of Alberta and Invest Alberta Corporation to fuel regional economic development by adding more than 100 high-value manufacturing jobs to the local economy at the plant long-term, as well approximately 200 construction jobs during site build. These new jobs will build on CGC's existing 750-strong workforce at six manufacturing locations and customer service and distribution centres across Canada.

"As a Canadian myself, expanding our presence in Western Canada and better serving our customers in the region has been a passion of mine since joining CGC over 20 years ago. More so, tapping into Albertans' culture of innovation, entrepreneurism and talent attraction is incredibly valuable for our company, employees and customers. It is an opportunity we couldn't miss," said Chris Griffin. "I sincerely thank the Wheatland County Reeve and every representative from the Government of Alberta and Invest Alberta Corporation who helped us seize this opportunity. We look forward to having a significant presence in Wheatland County where we can better serve our customers and support the local communities."

Wheatland County was selected as the home for CGC's Western Canadian wallboard manufacturing plant because of the immediate economic benefits offered by local and regional governments, as well as long-term growth opportunities thanks to its close proximity to Calgary, Alta.

In 2021, Wheatland County Council approved Bylaw 2021-23, making Wheatland County one of the first municipalities in Alberta to implement a municipal property tax incentive: Wheatland is Open for Business.

"Wheatland County Council has been laser focused on cultivating a development landscape conducive to diversifying our rural economy and driving job creation through strategic growth," said Amber Link, Wheatland County Reeve. "CGC's commitment to innovation, sustainability, and its entrepreneurial spirit align with Wheatland County's commitment to innovative, sustainable municipal service delivery. CGC and Wheatland's alignment creates an environment where future employees, and their families, can experience the unparalleled quality of life that Wheatland County offers. On behalf of Team Wheatland, I am excited to work with CGC, stakeholders, our ratepayers, and businesses to create a development that works for everyone."

The Government of Alberta and Invest Alberta worked with CGC for more than a year on this project and will provide $3.74 million from the Investment and Growth Fund to support CGC's expansion to rural Alberta.

"An unprecedented diversification of our economy is happening," said Alberta Premier Jason Kenney. "This investment by CGC to build a wallboard manufacturing plant in Wheatland County is proof of that, with more great news for Alberta's economic recovery."

"Alberta's government has made a concerted effort to advance economic diversification and make our province the most attractive destination for investment in North America," said Nate Horner, Minister of Agriculture, Forestry and Rural Economic Development. "CGC's decision to locate their $210 million wallboard manufacturing plant in Wheatland County is more proof that our plan working, creating jobs, and delivering tangible wins to rural communities."

"Investments like this one from CGC are proof positive that Alberta is once again the economic engine of Canada," said Doug Schweitzer, Minister Jobs, Economy and Innovation. "Since we launched Alberta's Recovery Plan two years ago, we have been unwavering about diversifying the economy, attracting investment and creating good jobs for Albertans. Thanks to collaboration between government, Invest Alberta, Wheatland County and CGC, we've achieved all three today."

"Programs like the Investment and Growth Fund give Alberta a competitive advantage when attracting new and exciting investment to the province," said Rick Christiaanse, Chief Executive Officer, Invest Alberta. "Today's announcement with CGC is another example of a high-impact, high-value investment in Alberta that creates jobs and grows Alberta's innovative edge in the manufacturing sector."

The Company's Most Sustainable Wallboard Plant--Ever

The CGC Wheatland plant will be supported by USG's 120 years of experience and innovation, as the company invests heavily in research and development, especially around sustainability. The plant will implement a combination of eco-friendly product design, equipment and process innovations, alternate and renewable energy, and localizing operations, combining to make this the most sustainable wallboard plant across the USG/CGC network.

For example, the Wheatland plant's electricity needs will be powered by renewable energy through an onsite solar power farm. Additionally, this will be the company's first plant in Canada built with the technology to manufacture USG Sheetrock® Brand EcoSmart Panels, which require up to 25% less water and 20% less CO2 to produce than traditional wallboard. The reduced carbon emissions are equivalent to eliminating 10,000 cars from the road.

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