The Story

Southern Champion Tray (“SCT”) is a 94-year-old sustainable paperboard packaging converter specializing primarily in food packaging for the grocery, bakery, and restaurant industries. It is one of the largest family-owned manufacturers of paperboard packaging in the United States, servicing all 50 states and several other countries.

SCT plans is expanding its manufacturing facilities in Chattanooga, TN (Hamilton County) with the new construction of a 300,000 square foot facility, which will increase its efficiency and add capacity to address increasing demand. The facility is located in a severely distressed census tract with 30.9% poverty and an unemployment rate 1.66x the national average. The facility includes 275,000 sq. ft. of manufacturing and storage, and 25,000 sq. ft. of non-manufacturing space including a lobby, locker rooms and offices. The new facility will house all production of SCT’s high-volume web-fed items.

This investment create 156 quality manufacturing jobs and create 53 temporary construction jobs.

The Financing

• Total Project Cost: $30 million
• MuniStrategies Allocation: $6.5 million

The Impacts

Economic: The new facility adds more than 300,000 square feet of manufacturing space to its current Chattanooga operations, converting paperboard into packaging products utilizing the latest manufacturing technology.

Jobs: The project creates 156 permanent new jobs with an average wage of approximately $20.65, which is 161% of the $12.84 single person living wage for Hamilton County. It’s minimum starting wage is $17.31/hour, which is 137% of the single person living wage.

Community: The project is partially a result of the community wide economic development strategy, Chattanooga Climbs. Through the Chattanooga Chamber Foundation, Chattanooga Climbs’ vision is to grow stronger businesses, create more high-quality jobs, develop skills for the new economy and increase regional prosperity for all residents by 2025. Part of the plan that qualifies SCT is that it includes expansion of advanced manufacturing and its Mobility for All goal strives to make high-quality jobs accessible to all residents.  Chattanooga Chamber is helping to provide PILOT incentives as part of this expansion with a grant of $347,000. TECD and TVA will be jointly contributing $1,500,000 in grants.

Workforce Development: SCT offers a mentoring program to develop personal and professional skills as well as develop leadership skills. 100% of all jobs will be available through community workforce agencies, non-profits, and ministries including First Things First, Teen Challenge, Bridge Refugee Services, La Paz, Project Return, A Better Tomorrow, and posted with the Tennessee Career Center.

In the News

Southern Champion Tray Breaks Ground On $60 Million Expansion At The Centre South Riverport

Southern Champion Tray’s New Manufacturing Facility, Chattanooga