The Memphis and Shelby County, Tenn., Industrial Development Board granted a 10-year tax freeze to K.T.G. LP, which is investing more than $35 million to revitalize the former American Paper Corp. tissue mill.
The company, a wholly owned subsidiary of Canada-based Kruger Inc., plans to create 175 jobs within three years. The tax abatement will save the company $2.67 million over the period.
Mike Cline, vice president and general manager, said that Kruger, which was a majority owner of the plant two years ago through its Global Tissue LLC subsidiary, doesn't plan to make the same mistakes it did the first time it came to Memphis.
Global Tissue filed for bankruptcy and left scores of local vendors with unpaid claims.
The board also agreed to extend a tax abatement program for the former Birmingham Steel mill in Memphis to Nucor Corp., based in Charlotte, N.C.
Nucor has bought much of Birmingham Steel's operations, including the idled steel mill in Memphis.
The company has not yet committed to reopen the Memphis mill, but agreed to pay the IDB a $300,000 fee to keep the tax abatement program open for two years. The Commercial Appeal
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