December 9, 2011

State of Alabama
Press Release: Alabama Department of Commerce

SCA To Add Two More Production Lines

By Russ Corey
The Times-Daily

SCA Tissue is receiving noneducational tax abatements for the addition of two new production lines at its Shoals facility.

Marty Ferguson, director of SCA’s Southeast Operations, told Colbert County commissioners that two new converting lines should be operational by 2013.

Ferguson said a converting line involves taking large rolls of paper called “parent rolls” and converting them into different products, such as paper napkins, hand towels or bath tissue. At the end of the lines, the new paper products are packaged and ready to be boxed and shipped.

The two new lines represent a $7.5 million investment at the company’s facility in Barton Riverfront Industrial Park in western Colbert County.

The new lines will be installed in the existing facility and are similar to recent production expansions, including a $15 million expansion announced in November 2010 and a $4.3 million expansion in August 2010.

“The investment shows SCA’s confidence in the Barton Operation,” Ferguson said. “We’re glad to be in the Shoals area.”

Commissioners agreed to abate noneducational property taxes totaling $154,080 over a 10-year period. The company will still pay $192,600 in property taxes that help fund school systems in Colbert County.

SCA also will receive a sales tax abatement of $102,755, but will still pay $38,533 in sales taxes, according to the tax abatement application the company presented to the commission.

A 1992 act allows the company to ask for the abatement of all noneducational property and sales taxes. The new lines will give the company’s Barton operation about 40 converting lines, Ferguson said.

“This will increase our capacity at the plant,” Ferguson said.

The products will be made for SCA’s “away from home” market, meaning they will be found in places such as restaurants, school restrooms, office buildings, hotels and other locations.

Ferguson said there are no additional jobs associated with the expansion. He said staffing is based on the number of orders SCA receives for a particular product.

“We look at our orders and see how we need to staff going forward,” Ferguson said.

SCA employs about 500 people and there are 50 or so contract workers employed as janitors or security personnel.

Ferguson said there have been no layoffs since the Shoals plant has been in operation.

“We’ve been able to maintain our employment levels,” Ferguson said.

Ferguson said SCA will now order the new equipment and begin the installation process in 2012.

Susie Heird, vice president of the Shoals Economic Development Authority, said SCA has had at least one capital investment project in each of the past several years, which demonstrates the growth of their product lines.

Heird said SCA has several facilities where capital investments could be made.

“We’re fortunate to have the Barton facility get those expansions,” Heird said. “It speaks well for the community’s labor force.”

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