South Carolina Tissue will invest $140 million in a facility that will produce parent rolls of tissue, towels and napkins.
The company expects to create 200 jobs over the next five years.
The company first talked in the spring about plans to locate a plant in the general area under the name South Georgia Tissue.
SCT will begin construction of the facility in first quarter 2011 and plans to have it completed by early first quarter 2012.
South Carolina Tissue LLC is a privately owned company.
The principals are Ray Stoveken, the CEO, and Andrew Thompson, the chief financial officer.
The company produces parent rolls from post- consumer fiber and sells the parent rolls to converters to produce tissue products.
The company is considered a "green" industry because it will recycle old paper, such as office paper and juice cartons, "pulp it down and turn it into tissue," Thompson said in a telephone interview from his Augusta office.
He said the 1-ton "parent" rolls are then sold to a third party, which distributes them to companies that convert them into tissue products.
"We are not a paper mill," said Thompson, "There's no smell, no icky byproducts. None of that."
SCT will locate its new facility at the South Carolina Advanced Technology Park in Snelling, about five miles west of Barnwell.
"From Dixie Narco's expansion to Horsehead's significant investment to Kronotex's recent announcement, good things are happening in Barnwell County and South Carolina Tissue's decision to locate in Barnwell County is more good news for the area," said state Secretary of Commerce Joe Taylor.
SCT is expected to begin hiring three months before commissioning of the plant to provide adequate time for new hire selection and training.