Paperboard packaging manufacturer Southern Champion Tray (SCT) has announced a new $84.9m investment to expand operations in Chattanooga, Tennessee, US.

The announcement was made by SCT officials along with Tennessee Governor Bill Lee and Department of Economic and Community Development Commissioner Bob Rolfe.

The investment will see the company develop a new manufacturing facility in the Centre South Riverport Industrial Park.

The new manufacturing facility, which will convert paperboard into packaging products, is expected to generate more than 120 new jobs in Hamilton County in the next five years.

Property acquisition for the facility is subject to the completion of due diligence and is expected to be completed in the first quarter of next year.

SCT anticipates the construction to begin next year and complete by early 2022.

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Besides this facility, the company operates three more facilities in Chattanooga.

Southern Champion Tray chief operating officer Brian Hunt said: “We at Southern Champion Tray are extremely appreciative of Mayor Coppinger, the Chattanooga Chamber, Tennessee Department of Economic and Community Development along with TVA, for the support in our company’s growth.

“This 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.”

SCT produces and distributes paperboard packaging products including food sleeves, trays, window boxes, cupcake inserts and others.

The family-owned company employs more than 750 people.