By Jason M. Reynolds

Staff Writer

Chattanooga manufacturer Southern Champion Tray is embarking on a $10 million to $12 million expansion.

"This will be a significant increase that will allow us to continue to have a double-digit growth rate for several more years, probably the next five years," said President and CEO John Zeiser.

The expansion will center around adding a web-fed cutting machine to give Southern Champion more than 30 percent additional cutting capacity, Mr. Zeiser said. The plant at 220 Compress St. off Manufacturers Road is at full capacity, running three shifts five to six days a week, he said.

Third-generation, family-owned Southern Champion makes paperboard-packaged products for food, pharmaceutical and other industries. Products include paperboard folding cartons, high-end graphic packaging, sleeves and foodservice packaging items.

"We applaud Southern Champion Tray for its commitment to Chattanooga, which confirms our message that we have a great community for business," Trevor Hamilton, Chattanooga Area Chamber of Commerce vice president of economic development, said in a statement.

Southern Champion has begun hiring workers already, and within three years expects to have added 50, bringing its work force in Chattanooga and Texas to around 400 people, Mr. Zeiser said. The average salary will be at least $40,000, according to the statement.

"It is fitting that in its 80th anniversary year Southern Champion tray should celebrate its longevity and growth with a project that will bring 50 high-paying jobs to Chattanooga," Hamilton County Mayor Claude Ramsey said in the statement.

Southern Champion's expansion could be the harbinger of future manufacturing expansions in the city, said Ray Childers, president of the Chattanooga Manufacturers Association.

The machinery will be added within 12 months, Mr. Zeiser said, and likely will be placed in vacant space inside the plant. The plant may be expanded, but space in which to do so is tight, he said.

"Southern Champion Tray has earned a reputation for product innovation and commitment to high principles," Chattanooga Mayor Ron Littlefield said in the statement.

E-mail Jason M. Reynolds at jreynolds@timesfreepress.com