Cascades sells South Carolina tissue mill

Late last week, it was announced that Kingsey Falls, Quebec-based paper packaging company Cascades Inc. had sold its recycled paper mill in Barnwell County, South Carolina, to the ST Group, a North American away-from-home tissue manufacturer.

The acquisition was completed through ST Group’s newly formed subsidiary, Barnwell Tissue Solutions, and marks ST’s third tissue facility, brining the company’s total annual production capacity to 220,000 tons.

According to a news release from South Carolina Gov. Henry McMaster, the transaction totals about $12 million and will create 50 new jobs.

“This acquisition enables us to stay one step ahead of our customers’ growth ambitions, and we expect the mill to start up by year’s end,” Barnwell Tissue Solutions owner Sahil Tak says. “We’re excited to become part of the Barnwell County community and are deeply grateful to local and state leaders for their support in making this possible.”

The Barnwell mill features a 110-inch Valmet hybrid QRT/DCT tissue machine, installed in 2016, with an annual capacity of 30,000 tons. It also houses a 40,000-tons-per-year recycled fiber deinking mill, allowing the production of both virgin and recycled tissue paper. The 300,000-square-foot site also includes warehouse space with room for future expansion.

“We also thank Cascades for their assistance throughout this process, which resulted in them securing future tissue from the Barnwell mill for their network,” Tak says. “We look forward to working with the local workforce, investing in the community, and contributing to South Carolina’s manufacturing heritage.”

ST Group was founded in 2007 with the acquisition of its first mill in Oconto Falls, Wisconsin, and the company says it has a history of “customer-driven expansion.”

The company has two other mills, one in Oconto Falls, Wisconsin, and another in Franklin, Virginia.

The Oconto Falls site has been operating since the late 1800s and was purchased by ST Group in 2007. Currently, the tissue mill features two high-speed tissue machines, a recycled fiber plant and a wastewater treatment facility.

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ST Group purchased the Franklin mill in 2012 and restarted the facility’s tissue machine in 2013.

“This $12 million investment is a vote of confidence in South Carolina’s business climate and manufacturing expertise,” McMaster says. “By revitalizing an existing tissue mill in Barnwell County, Barnwell Tissue Solutions will restore 50 valuable jobs to the community. We are proud to welcome this company to our state and look forward to its continued success.”