Chattanooga-based Southern Champion Tray plans to invest nearly $85 million in a new manufacturing plant at Centre South Riverport where it will create more than 120 jobs, officials said Tuesday.
The 93-year-old company, which makes paperboard packaging products including food sleeves, trays, window boxes, and cupcake inserts, already employs over 750 people, including more than 500 in Chattanooga.
The new manufacturing facility will convert paperboard into packaging products. Construction will begin in early 2021 with completion by early 2022.
John Zeiser, SCT president and chief executive officer, said the company is purchasing a 56.4-acre tract in Centre South off Amnicola Highway.
"It will support continued expansion of our manufacturing operation here in town," he said. "We are bursting at the seams where we are, so we have to expand. We're blessed to be able to continue to grow in Hamilton County."
Brian Hunt, the company's chief operations officer, said the move is "a vote of confidence for every current SCT employee, as well as the 120 new employees that we will be adding."
"After 93 years of continuous growth, we are excited to build another facility to support many more years of serving customers with great packaging and distinctive service," he said.
SCT's purchase of the property is subject to completion of due diligence which is expected to finish by early 2021, officials said.
Staff photo by C.B. Schmelter / A machine at Southern Champion Tray works on making pizza clamshells in 2019 in Chattanooga, Tenn."Tennessee's economy will continue to rebound because companies continue to invest and create jobs in our state," Tennessee Gov. Bill Lee said in an announcement of the project Tuesday. "Southern Champion Tray's expansion will provide a boost to Hamilton County and surrounding areas, and I appreciate the company for choosing to grow in Tennessee."
Earlier this summer, the manufacturer of paperboard items for the bakery and food service industry acquired another longtime packaging company.
Honeymoon Paper Products Inc., a 60-year-old business based in Fairfield, Ohio, is a packaging provider to supermarket and retail bakeries, delis, and food service and wholesale companies. It employs about 150 people. According to SCT, it was to integrate that company's catalog of items into its offerings.
Zeiser said then that the acquisition made a lot of sense for Southern Champion and Honeymoon customers as the deal expanded the breadth of its product line and scope of its manufacturing capabilities.
With the new Centre South Riverport plant, SCT will have four facilities in Chattanooga, with its headquarters located at 220 Compress St. off Manufacturers Road.
Hamilton County Mayor Jim Coppinger said SCT is "a Hamilton County legacy company."
"I'm thrilled about their decision to expand into Centre South Riverport Industrial Park, bringing over 120 jobs and over $80 million in investment," he said.
Zeiser said the company is "grateful to Mayor Coppinger, the Chattanooga Chamber, the Tennessee Department of Economic and Community Development, and TVA for their support and assistance in this process."
Last year, the company created a new tamper-evident packaging system for use by restaurants and food delivery services. Called the Guarantab, which the company dubs "Fort Knox in a box," it securely locks the container so that customers will know their food has not been disturbed during the delivery process.
Contact Mike Pare at mpare@timesfreepress.com. Follow him on Twitter @MikePareTFP.