US$ 18 million investment to support reopening of South Carolina tissue mill
New Markets Tax Credit financing will fund the modernization of a 300,000-square-foot facility and help restore 90 manufacturing jobs
A US$ 18 million investment through the U.S. New Markets Tax Credit (NMTC) program will support the acquisition, modernization and reopening of a shuttered tissue mill in Barnwell, South Carolina. The financing is expected to restore 90 full-time manufacturing jobs in the region, most of them accessible to low-income workers.
The 300,000-square-foot facility, which closed in 2023 after 138 layoffs, will receive funding for equipment upgrades and working capital needed to return it to full operations. The project is being backed by National New Markets Fund (NNMF), an affiliate of Los Angeles-based SDS Capital Group.
“Reactivating this facility represents a meaningful opportunity to restore quality manufacturing jobs in a community that has experienced significant economic disruption,” said Deborah La Franchi, CEO of National New Markets Fund. “Projects like this, where a shuttered plant is brought back to life, demonstrate the power of the NMTC program to strengthen local economies and provide accessible, quality employment.”
The investment is particularly relevant to the paper and tissue industry in rural areas, where the closure of manufacturing facilities can have a significant impact on local employment and economic activity. In Barnwell County, where manufacturing remains an important part of the economy, the poverty rate exceeds 35%.
The project also highlights the role of tax-credit financing in preserving and restoring paper manufacturing capacity in smaller communities. NNMF previously invested US$ 15 million in ST Paper in 2010, helping the Wisconsin mill avoid foreclosure during the Great Financial Crisis. The facility currently employs more than 95 people.
“NNMF has been a tremendous partner to us. Due to the poor condition of the existing equipment, the costs required to bring the mill back to a high-quality operating standard would have been prohibitive without NNMF’s investment, putting the 90 new jobs at significant risk. We appreciate this second investment NNMF has made with ST Group. We remember their very timely investment of $15 million of NMTC allocation during the Great Financial Crisis, which enabled us to avoid foreclosure and the loss of more than 180 jobs,” said Sahil Tak, owner of Barnwell Tissue Solutions. “With this newest investment in place, we are now working closely with the Southern Carolina Alliance, whose outreach and promotional support are helping us connect local residents with these new employment opportunities.”
The financing is part of a broader NMTC structure supported by Dudley Ventures, which is serving as the tax credit investor. Administered by the U.S. Treasury Department, the program channels private investment toward projects in low-income communities through tax credits.
The 90 new positions at the Barnwell facility will offer wages above the local living wage, along with healthcare, retirement plans and professional development benefits.
