Orchids Paper Products Company plans to build an integrated tissue paper facility in Barnwell, South Carolina

Tuesday, Apr 21, 2015

Orchids Paper Products Company plans to build an integrated manufacturing site in Barnwell, South Carolina. The project will include a tissue paper machine with paper making capacity between 35,000 and 40,000 tons per year and two converting lines with converting capacity between 30,000 and 32,000 tons per year, which are capable of producing value through ultra-premium grades of tissue products, as the company said in the press release received by Lesprom Network.

The company expects that the total cost of the facility will be approximately $110 million to $127 million, which will be deployed over the next two years, with approximately 40% occurring in 2015 and the remainder in 2016 and early 2017.

The Barnwell facility will include a paper machine, a recycling facility, two converting lines, buildings to house the paper machine and converting lines and land. The Company expects to fund this project using the proceeds from a potential follow-on common stock offering, additional bank borrowings and cash flow from operations.

The Company intends to break ground during the 2Q of this year. Build-out and start-up of the converting lines will come in phases, with the first line expected to become operational at the end of 2015 and the second line to become operational in the 2Q 2016. Engineering and construction of the paper machine are expected to begin in the 2Q 2015 and it is expected to become operational in early 2017.

Jeff Schoen, President and CEO, stated, "We anticipate that the Barnwell facility, in conjunction with our access to structured tissue paper on the West Coast, will increase our ultra-premium tissue offerings across the U.S., as well as provide high quality products across our value and premium offerings. Local and state governmental entities in South Carolina provided strong economic incentives for the Barnwell project. We anticipate the facility will employ approximately 130 full time employees."

Orchids Paper Products Company produces a full line of tissue products, including paper towels, bathroom tissue and paper napkins.

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