SKC begins second phase of expansion

COVINGTON -- SKC has begun constructing the second phase of an expansion first announced last year.

The expansion is an additional PET film line, which will be the third expansion since the industry opened its facilities off Hazelbrand Road in the late 1990s. It is the second phase of a $100 million investment that was announced in 2011.

"The new investment is an expansion of our existing PET films plant, which is a new add-on building with new machinery," said Tom Gray, vice president of operations.

New jobs will be created, but Gray said the exact number will not be finalized until late 2013. The line start up is scheduled for the second quarter of 2014, he said. The company expects to begin hiring for positions in mid- to late 2013.

The new film line will produce customer "high value added film products" for new emerging U.S. and global markets, according to a statement issued by SKC. At the time of the initial announcement of the expansion, SKC officials estimated that both phases would generate 120 new jobs.

The two-phase expansion represents two separate business investments, Gray said. The first phase of the expansion is a Photovoltaic plant housing two production lines, which began operations in September 2011.

This second phase is a new polyester film line located on SKC's existing campus, which also houses SKC's U.S. corporate headquarters, polyester film production facilities, chemical systems house and photovoltaic films facilities.

SKC opened its headquarters and manufacturing facility in Covington in May 1999 and currently manufactures a variety of Skyrol brand polyester films on three production lines.

SKC Inc. is a subsidiary of SK group, manufacturer of specialty and PET film sold under Skyrol, Skywel and Skynex brands based in Korea.

SKC Inc. produces a wide range of films used in packaging, industrial, imaging, electrical, bio-compostable and solar applications. SKC Inc. is headquartered in Covington, situated on 389 acres.

Currently, SKC employs 350 employees plus additional contractors.

The state offered SKC an $8.5 million incentive package to expand in Georgia. Local officials also offered a seven-year tax abatement for both phases of the build out, with the company to pay no taxes for the first three years and collections increasing incrementally by 25 percent the following four years. The Newton County Industrial Development Authority was awarded an Economic Development Growth and Expansion award of $350,000 to purchase machinery and equipment for the two-phase expansion.

In 2010, SKC opened another expansion, the polyurethane systems plant, which produces polyurethane foam used as cushion for car seats and furniture and as insulation for homes, refrigerators and other appliances.