Barnwell Tissue Mill Set to Reopen with $18 Million NMTC Investment
A shuttered tissue manufacturing facility in Barnwell, South Carolina, is set to resume operations following an $18 million investment from National New Markets Fund, LLC (NNMF), an affiliate of Los Angeles-based SDS Capital Group.
The investment, made through the federal New Markets Tax Credit (NMTC) program, will support ST Group of Companies’ acquisition, renovation, equipment upgrades and working capital requirements for the 300,000-square-foot facility at 285 Midfield Road. The mill, which closed in 2023 and resulted in 138 layoffs, will reopen under the newly established subsidiary Barnwell Tissue Solutions.
The project is expected to create approximately 90 full-time jobs, with the majority of positions designed to provide employment opportunities for individuals from low-income communities. The new roles will offer wages above the local living wage, along with healthcare, retirement benefits and professional development opportunities.
The reopening is expected to provide a significant economic boost to Barnwell County, a rural community where manufacturing remains an important contributor to economic stability. With the county facing a poverty rate of more than 35%, the restoration of manufacturing employment is seen as an important step toward strengthening the local economy.
“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. She added that projects involving the revival of shuttered industrial facilities demonstrate the NMTC program’s ability to strengthen local economies and create accessible employment opportunities.
The latest investment also marks a renewed partnership between NNMF and ST Group. In 2010, NNMF invested $15 million in ST Paper through the NMTC program, helping the company avoid foreclosure and preserve more than 180 jobs during the Great Financial Crisis. The ST Paper facility in Oconto Falls, Wisconsin, continues to operate with more than 95 employees.
Sahil Tak, owner of Barnwell Tissue Solutions, said the latest NNMF investment was critical because the condition of the existing equipment would otherwise have made the cost of restoring the mill to high-quality operating standards prohibitive. He also highlighted the role of the Southern Carolina Alliance in connecting local residents with the new employment opportunities.
The NNMF financing is supported by the New Markets Tax Credit program administered by the U.S. Treasury Department. NNMF, along with other investment groups, competes annually for NMTC allocations and converts the tax credits into capital for projects located in low-income communities. Dudley Ventures is serving as the tax credit investor for the broader financing structure.
Barnwell Tissue Solutions is a subsidiary of Franklin Paper and part of the ST Group of Companies, a family-owned business with manufacturing operations across the United States. The company is also one of the country’s largest parent roll marketers and is expanding its operations into South Carolina with the Barnwell facility.
The reopening has received support from South Carolina state and local officials, including Governor Henry McMaster and economic development authorities, who have recognized the project as an important contributor to restoring manufacturing employment in Barnwell County.
With the acquisition, facility upgrades and workforce development now underway, the reopening of the Barnwell tissue mill is expected to bring new manufacturing capacity and long-term employment opportunities to the region.