Barnwell tissue mill restart gets $18M tax credit

A California company says it took advantage of $18 million in the New Markets Tax Credit program to support the acquisition and restart of a shuttered tissue manufacturing site in Barnwell.

SDS Capital Group says the plan is turning out better than originally anticipated for local workers.

Barnwell Tissues Solutions announced through the governor’s office in June 2025 its intention to purchase a closed toilet tissue manufacturing facility and create 50 jobs. The plant was once owned by a company called Orchids. It was bought by Cascades but soon closed in 2023.

National New Markets Fund LLC, an affiliate of Los Angeles-based SDS Capital Group, has invested $18 million of its New Markets Tax Credit allocation to support ST Group of Companies’ acquisition and renovation of the shuttered manufacturing facility. They now say the investment will result in 90 full-time jobs, most of them accessible to low-income individuals in the region. New Markets Tax Credit is a federal program to encourage private investment in low-income or distressed communities.

According to an SDS Capital Group news release, ST Group of Companies, under its newly formed subsidiary Barnwell Tissue Solutions, is reopening and upgrading the 300,000-square-foot tissue mill at 285 Midfield Road. When the mill closed in 2023, total layoffs came to 138 workers, according to the release.

The tax credit allocation supports the acquisition, equipment upgrades, and working capital needed to return the facility to full operations.

“Reactivating this facility represents a meaningful opportunity to restore quality manufacturing jobs in a community that has experienced significant economic disruption,” Deborah La Franchi, CEO of National New Markets Fund, said in the release. “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 project is especially significant for Barnwell County, a rural community where manufacturing plays a critical role in economic stability and where the poverty rate exceeds 35%, the release said.

“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,” Sahil Tak, owner of Barnwell Tissue Solutions, said in the release. “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. 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 NNMF investment utilizes capital from the NMTC program administered by the U.S. Treasury Department. Investment groups, such as NNMF, compete annually to receive NMTC allocations. NNMF sells the tax credits to institutional investors, using the proceeds to invest in projects benefiting low-income communities, such as Barnwell Tissue Solutions’ manufacturing facility, the release stated.

NNMF’s investment is part of a broader NMTC financing structure supported by Dudley Ventures, which is serving as the tax credit investor.

Barnwell Tissue Solutions is a subsidiary of Franklin Paper and part of the ST Group of Companies, a family-owned business operating manufacturing facilities throughout the United States. The company is one of the largest parent roll marketers in the country and is expanding its footprint in Barnwell, its first location in South Carolina.

The company says the new jobs will offer all employees wages above the local living wage, along with comprehensive benefits, including healthcare, retirement plans and professional development support.