Mike Jeffrie pulls the filtration bags from one of the machines that cuts the bag to a specific length inside of the Southern Filter Media. After a recent consolidation of two operations, Southern Filter Media moved to a new facility in Hixson.Southern Filter Media, a pollution control business that makes filter bags for industrial companies, has leased part of the former Chattanooga Group site in Hixson to consolidate its operations.
Charlie Poe, Southern's chief executive, said the 85-employee company merged operations from two facilities into a new site on Adams Road to become more efficient with extra space.
"It will give us room for expansion and growth," Poe said about the nearly 50,000 square feet of space off Kanasita Drive.
Chattanooga Group was a 60-year-old medical device manufacturer that shut down its 150,000-square-foot plant in 2010 and cut more than 300 jobs. San Diego-based DJO, which owned Chattanooga Group, shifted manufacturing operations to Mexico, customer service to Vista, Calif., and distribution to Indianapolis. At one time, the business had more than 400 employees in Chattanooga.
Tom Kale of Chattanooga real estate firm Commercial Associates, said Southern Filter Media had been hunting for space. The company, founded in 1973, had leases expiring in East Chattanooga and Soddy-Daisy, he said.
"It was basically a turnkey operation," said Kale about the Chattanooga Group site. "It was ready for them to move in equipment, set up and go."
Poe said Chattanooga Group had a sewing operation when it ran the facility.
"[The site] pretty much met our need," he said about the location for which Southern signed a long-term lease.
Not only does Southern make filter bags, but the privately held company offers related equipment and services for manufacturers such as cement, asphalt, woodworking and plastic, Poe said.
"Anybody that creates dust - we service those people," Poe said.
Southern Fabric sales are up around 20 percent over 2010 so far this year following the economic downturn that hit the industry three years ago.
"It was like a ball dropping off a table," Poe said of the sudden downturn in November 2008.
The Chattanooga Group building, listed by CB Richard Ellis, is sectioned into three, Kale said. Prior to Kale's inquiry about the space, the property owners weren't openly considering leases, but are doing so now for the other 100,000 square feet of vacant space, he said.
"This was such a perfect fit that they agreed to change strategy," Kale said. "It's great to keep these jobs in Chattanooga."