Barnwell County Tissue Mill to Reopen With $18 Million New Markets Tax Credit Investment

A shuttered 300,000-square-foot tissue mill in Barnwell County, South Carolina, is set to reopen following an $18 million New Markets Tax Credit investment supporting its acquisition, renovation and return to full operations.

National New Markets Fund (NNMF), an affiliate of Los Angeles-based SDS Capital Group, provided the allocation to ST Group of Companies for the facility, which closed in 2023 and resulted in 138 layoffs. The project is being carried out through newly formed subsidiary Barnwell Tissue Solutions.

The financing will support the acquisition of the mill at 285 Midfield Road, equipment upgrades and working capital. The project is expected to create 90 full-time jobs, the vast majority of which will be accessible to low-income individuals in the region.

Barnwell County is a rural community where manufacturing is a significant part of the local economy and the poverty rate exceeds 35%, according to the companies involved. The project is intended to restore manufacturing employment following declines in the sector.

“This is 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.

The investment marks a second NMTC-backed project between NNMF and ST Group. In 2010, NNMF invested $15 million in ST Paper, helping the company avoid foreclosure and continue operating its mill in Oconto Falls, Wisconsin.

Sahil Tak, owner of Barnwell Tissue Solutions, said the latest investment was necessary because the condition of the existing equipment had made returning the mill to operating standards prohibitively expensive.

The broader NMTC financing structure is supported by Dudley Ventures, which is serving as tax credit investor. The NMTC program is administered by the U.S. Treasury Department.

Barnwell Tissue Solutions is a subsidiary of Franklin Paper and part of the family-owned ST Group of Companies. The company said the Barnwell facility will be its first location in South Carolina.

The project has received support from South Carolina state and local officials. The 90 new positions will pay above the local living wage and include healthcare, retirement plans and professional development benefits.