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<P style="font-size: 14pt" align="center"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
<FONT
style="font-size: 12pt">Washington, D.C. 20549 </FONT></B>

<P style="font-size: 18pt" align="center"><B>FORM 8-K</B>

<P style="font-size: 12pt" align="center"><B>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934</B>

<P style="font-size: 10pt" align="center"><B>Date of Report (Date of earliest event reported): November 17, 2008</B>

<P align="center">&nbsp;

<P style="font-size: 24pt" align="center"><B>USG Corporation<BR>
</B><FONT style="font-size: 10pt">(Exact name of
registrant as specified in its charter) </FONT>
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  <TD style="border-bottom: #000000 1px solid"><B>Delaware</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>1-8864</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>36-3329400</B></TD>
 </TR>
 <TR valign="top">
  <TD>(State or other Jurisdiction of Incorporation)</TD>
  <TD>&nbsp;</TD>
  <TD>(Commission File Number)</TD>
  <TD>&nbsp;</TD>
  <TD>(IRS Employer Identification No.)</TD>
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  <TD style="border-bottom: #000000 1px solid"><B>550 West Adams Street, Chicago, Illinois<BR>
</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>60661-3676</B></TD>
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  <TD>(Address of Principal Executive Offices)</TD>
  <TD>&nbsp;</TD>
  <TD>(Zip Code)</TD>
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<P style="font-size: 10pt" align="center">Registrant&#8217;s telephone number, including area code: <B>(312)436-4000</B>
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  <TD nowrap>(Former name or former address if changed since last report.)</TD>
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<P style="font-size: 10pt" align="left">Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

<P style="font-size: 10pt" align="left"><FONT face="Wingdings">o</FONT> Written communications pursuant to Rule 425
under the Securities Act (17 CFR 230.425)<BR>
<BR>
<FONT face="Wingdings">o</FONT> Soliciting material pursuant to Rule
14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR>
<BR>
<FONT face="Wingdings">o</FONT> Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))<BR>


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<P style="font-size: 10pt" align="justify"><B>Section&nbsp;2 &#8211; Financial Information</B>

<P style="font-size: 10pt" align="justify"><B>Item&nbsp;2.05 Costs Associated with Exit or Disposal Activities.</B>

<P style="font-size: 10pt; text-indent: 4%" align="justify">As part of the Registrant&#8217;s steps to adjust
operations, programs and staffing to adapt to current construction and financial market conditions, it is making an
additional capacity reduction of approximately one billion square feet from its wallboard manufacturing network and
closing two other plants. On November&nbsp;17, 2008, the Registrant determined that it would permanently or temporarily
close wallboard manufacturing lines at United States Gypsum Company&#8217;s Plaster City, California, Jacksonville,
Florida, Baltimore, Maryland and Stony Point, New York plants, the cement board manufacturing line at its Santa Fe
Springs, California plant and its Delavan, Wisconsin substrate plant. The Registrant expects to complete the closures
by the end of the current fiscal quarter.

<P style="font-size: 10pt; text-indent: 4%" align="justify">In addition, the Registrant&#8217;s subsidiary, L&amp;W
Supply Corporation, has determined that it will close 31 centers by the end of the current fiscal quarter.

<P style="font-size: 10pt; text-indent: 4%" align="justify">The Registrant will record charges of approximately
$18&nbsp;million in the current and future fiscal quarters related to these closures. These charges include
approximately $11&nbsp;million for termination benefits, $6&nbsp;million for associated costs, principally equipment
lease terminations and cleanup costs, and $1&nbsp;million for inventory write-offs. The Registrant estimates that it
will incur cash expenditures of approximately $17&nbsp;million in the current and future fiscal quarters in connection
with the closures.

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<P style="font-size: 10pt" align="center"><U><B>SIGNATURE</B></U>

<P style="font-size: 10pt; text-indent: 3%" align="justify">Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.

<P style="font-size: 10pt; margin-left: 46%" align="justify">USG CORPORATION <BR>
Registrant

<P style="font-size: 10pt" align="justify">Date: November&nbsp;21, 2008

<P style="margin-top: -11pt; font-size: 10pt; margin-left: 46%" align="justify">By: <U>Richard H.
Fleming&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
<BR>
Richard H. Fleming <BR>
Executive Vice President and Chief Financial Officer

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{"company-data": {"conformed-name": "USG CORP", "cik": "0000757011", "assigned-sic": "3270", "irs-number": "363329400", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-08864", "film-number": "081205997"}, "business-address": {"street1": "550 WEST ADAMS STREET", "street2": "DEPARTMENT 188", "city": "CHICAGO", "state": "IL", "zip": "60661", "phone": "312-606-4000"}, "mail-address": {"street1": "DEPARTMENT #188", "street2": "550 WEST ADAMS STREET", "city": "CHICAGO", "state": "IL", "zip": "60661"}}
Filed by Bowne Pure Compliance
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported): November 17, 2008
USG Corporation
(Exact name of
registrant as specified in its charter)
Delaware
1-8864
36-3329400
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
550 West Adams Street, Chicago, Illinois
60661-3676
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code:
(312)436-4000
(Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425
under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule
14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Section 2 – Financial Information
Item 2.05 Costs Associated with Exit or Disposal Activities.
As part of the Registrant's steps to adjust
operations, programs and staffing to adapt to current construction and financial market conditions, it is making an
additional capacity reduction of approximately one billion square feet from its wallboard manufacturing network and
closing two other plants. On November 17, 2008, the Registrant determined that it would permanently or temporarily
close wallboard manufacturing lines at United States Gypsum Company's Plaster City, California, Jacksonville,
Florida, Baltimore, Maryland and Stony Point, New York plants, the cement board manufacturing line at its Santa Fe
Springs, California plant and its Delavan, Wisconsin substrate plant. The Registrant expects to complete the closures
by the end of the current fiscal quarter.
In addition, the Registrant's subsidiary, L&W
Supply Corporation, has determined that it will close 31 centers by the end of the current fiscal quarter.
The Registrant will record charges of approximately
$18 million in the current and future fiscal quarters related to these closures. These charges include
approximately $11 million for termination benefits, $6 million for associated costs, principally equipment
lease terminations and cleanup costs, and $1 million for inventory write-offs. The Registrant estimates that it
will incur cash expenditures of approximately $17 million in the current and future fiscal quarters in connection
with the closures.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
USG CORPORATION
Registrant
Date: November 21, 2008
By:
Richard H.
Fleming
Richard H. Fleming
Executive Vice President and Chief Financial Officer