National New Markets Fund, LLC (“NNMF”), an affiliate of Los Angeles-based SDS Capital Group, has invested $18 million of its New Markets Tax Credit (“NMTC”) allocation to support ST Group of Companies’ acquisition and renovation of a shuttered manufacturing facility in Barnwell, South Carolina. The investment will result in the creation of 90 full-time jobs, the vast majority of which will be accessible to low-income individuals in the region.

ST Group of Companies, under its newly formed subsidiary Barnwell Tissue Solutions, is reopening and upgrading a 300,000-square-foot tissue mill located at 285 Midfield Road that closed in 2023, resulting in 138 layoffs. NNMF’s allocation will support 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,” said Deborah La Franchi, CEO of National New Markets Fund. “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%. Restoring these manufacturing jobs will help reverse the economic impact of recent declines in the sector across South Carolina and other rural areas. This is not the first time NNMF has financed a paper mill. In 2010, NNMF invested $15 million in ST Paper. The mill was within weeks of foreclosure. NNMF provided an NMTC loan that enabled ST Paper to keep operating and today there are more than 95 employees at this mill, located in a small rural community in Oconto Falls, Wisconsin.

“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. 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,” said Sahil Tak, owner of Barnwell Tissue Solutions. “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.

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 with a strong track record of 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 with this, its first location in South Carolina.

The project has received strong support from state and local leadership, including recognition from South Carolina Governor Henry McMaster and state economic development officials, who have identified the investment as a key driver in restoring manufacturing employment in Barnwell County.

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, helping ensure long-term workforce stability in the region.

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