Orchids Paper Products Company establishing operations in Barnwell County

Investment expected to result in 134 new jobs

April 20, 2015

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Orchids Paper Products Company, (NYSE: TIS) a company that specializes in the manufacturing of high-quality, private label consumer tissue products, is establishing operations in Barnwell County. The company is investing at least $110 million, with the potential for additional investment. The project is expected to create 134 new jobs in Barnwell, S.C.

Established in 1998 in Pryor, Okla., Orchids produces bulk tissue paper from both recycled and virgin fibers and converts it into a full product line of consumer tissue products, primarily supplying private label goods in the value, premium and ultra-premium-tier paper markets. The company currently manufactures products at its northeast Oklahoma facility and in Mexicali, Mexico through a strategic alliance with Fabrica de Papel San Francisco. Total paper capacity at these two sites is approximately 94,000 tons per year. The site in Barnwell, SC is expected to produce approximately 35-40,000 tons per year, boosting the company’s total production by over one-third.

Located at 285 Midfield Road in Barnwell, S.C., Orchids’ new South Carolina operations will initially focus on converting existing product currently shipped from the company’s other facilities. Build out and startup of the converting lines will come in phases, with the first line expected to become operational at the end of 2015, and the second line expected to become operational in the second quarter of 2016. As the company adds paper production, engineering and construction of the paper machine is expected to begin in the second quarter of 2015 and be operational by the beginning of 2017. Orchids’ Barnwell County operations will allow the company to better serve its growing Southeastern customer base.

Initial hiring for the Barnwell facility is expected to begin in August 2015. Hiring for all production, maintenance and clerical positions will take place through South Carolina Works. Additional advertisements for these positions will take place closer to August.

The Coordinating Council for Economic Development approved a $1.9 million Closing Fund grant to Barnwell County to assist with the costs of infrastructure improvements and site preparation as well as job development credits related to the project.

QUOTES

“This project will be a major step forward in our vision to become a national supplier of high quality consumer tissue products. Following a thorough analysis of the important aspects of a greenfield site, such as our current customer base and growth opportunities, logistics, workforce skills and abilities, and local and state incentives, we chose Barnwell for our first greenfield site. From the Governor to the Department of Commerce to Barnwell County's economic development team to the city of Barnwell, we found South Carolina to be very responsive to our company's business needs." Orchids Paper Products Company President and CEO Jeff Schoen

“Today, we celebrate Orchids Paper Products Company and its investment in one of our rural counties. The company’s capital investment of more than $110 million means more than 130 jobs in Barnwell, it’s another victory for our entire state, and we couldn’t be more excited to watch them grow for a very long time.” –Gov. Nikki Haley

“Last year, rural counties accounted for approximately 30 percent of the jobs recruited to the Palmetto State. With today’s announcement that Orchids Paper Products has selected Barnwell County as the location of its first Southeastern operations, rural South Carolina has achieved yet another big victory.”– Secretary of Commerce Bobby Hitt

“The people of Barnwell welcome Orchids Paper Products to our community. Every job created provides a better future for not only an individual, but for a family. On behalf of Barnwell County Council, we will continue to foster a pro-business environment to encourage both new and existing companies to grow here, and we look forward to working with the newest member of our industrial community.” –Barnwell County Council Chairman David Kenner

“We are excited over this good, solid industry coming to Barnwell. Industries like these not only create good jobs, they provide the revenue that will fund many of our city and county services, so the impact on our community goes much beyond the initial investment announced.” –City of Barnwell Mayor Edward Lemon

“We appreciate the 134 direct jobs that Orchids Paper Products will bring to Barnwell County, as well as the economic impact that these jobs and this investment will ultimately have on the area. We look forward to working with the company to improve the quality of life for our residents through job creation. Good jobs build communities and opportunities.” –SouthernCarolina Alliance Chairman Johnny Williamson

“We welcome Orchids Paper Products to our community, and our economic development commission hopes to be of service to this industry in the future. We will do everything we can to help this company thrive and prosper in Barnwell County. Our workforce and our county leadership value good jobs.” – Barnwell County Economic Development Commission Chairman Tommy Boyleston

FIVE FAST FACTS

•     Orchids Paper Products Company is establishing operations in Barnwell County.

•     Investment exceeding $110 million expected to create 134 new jobs.

•     Orchids Paper Products Company was established in 1998 in Pryor, Okla.

•     Orchids’ new Barnwell County operations will be located at 285 Midfield Road in Barnwell, S.C.

•     Those interested in joining the Orchids team should contact South Carolina Works.

About Orchids Paper Products Company

Orchids Paper Products Company is an integrated manufacturer of tissue paper products serving primarily the at home private label consumer market. With headquarters in northeast Oklahoma, the Company produces a full line of tissue products, including paper towels, bathroom tissue and paper napkins, to serve the value through ultra-premium quality market segments from its operations in northeast Oklahoma and Mexicali, Mexico. The Company provides these products predominately to retail chains throughout the United States. For more information on the Company and its products, visit the Company’s website at http://www.orchidspaper.com.