Southern Bag: It all started in Yazoo City

BY MARY ELLEN POWELL
Contributing Writer, Delta Business Journal

Located in the industrial park on Rialto Road in Yazoo City is a building that reads "Yazoo City is where it all began." The "it" referred to is Southern Bag, a company that employs approximately 190 people in Yazoo City and is the number three supplier in the United States and number six supplier in the world of multiwall paper bags.

Founded in 1959 as First Packaging, the company began as an adjunct to Mississippi Chemical to provide a consistent supply of multiwall paper bags that could hold fertilizer, dog food, seeds, or feed.

In 1961, Mississippi Chemical sold First Packaging to an investment group and the company was renamed Southern Bag. The business continued with the one location in Yazoo City as a well-respected entity in the industry for the next 30 years. In 1991, the owner, a division of the Hood Companies, decided to become more involved in packaging business.

The decision for Southern Bag to become more of a force in the industry, led to the establishment of three business goals that still govern the company today, according to Southern Bag Director of Quality Dan Dickinson. These goals were:

1. to expand business through growth and acquisition

2. to become the leader in high-quality print and graphics ("These products tend to be the more value-added part of the market," explained Dickinson.)

3. to become the unquestioned leader in the industry in quality and service. "We wanted to be the supplier for those who put a premium on quality and service, he said."

"We have remained focused on these goals. There are now 12 facilities throughout United StatesÑeight multiwall plants, one graphic arts facility Graphic Impressions, and three plastics plants that produce polyethylene that is printed on role stock and used as bags for such products as tortillas and bagels.

"On the printing side, we have the most graphic arts and printing facilities in the country. We have two facilities that can produce eight-color plus lacquer printing on multiwall bags, the type of bags used in the packaging of high-quality pet foods, and a central location that can produce graphics, if needed. All the facilities, however, have their own printing presses," Dickinson said.

Dickinson went on to say that Southern Bag has taken the lead in the industry in multiwall bag production. Of the 12 facilities, six are listed as being in compliance with International Standards Organization (ISO 9000) with Yazoo City being one of the qualified plants. The company is currently working toward all meeting the same standard, a standard that takes approximately two years to be registered.

One of the strengths of the company is that it takes care of its employees, according to Dickinson.

"The Yazoo City plant has a family environment and the customers notice this. The value of taking care of your employees is obvious in an industry like ours where a great deal of skill and a long-term commitment is required to become adept at using the equipment. We must have people who are very sophisticated about our customers and can identify themselves with the customer's needs. You can only achieve this by investing in your employees. If we require a commitment to our customers, we must in turn be committed to them."

Part of their commitment to their employees is seen in the safety record that Southern Bag has been able to maintain.

"Our Yazoo City facility is older, but it is very clean with a very safe work environment. In fact, we have just passed one year with no loss-time accidents. This makes for good business for the company," said Dickinson.

When some companies begin expanding, the older facilities are left by the wayside, but this is not the case with Southern Bag.

"As with all of our facilities, we are moving the business at Yazoo City slowly more in the direction of more high-quality pet foods bags and graphics facility. We have moved in two new weber machines that specialize in high-quality consumer bags. This required a large investment into this facility and, in addition to these machines, we have brought in a good deal of high-quality equipment that has increased the facility's capabilities. Yazoo City is a very important part of the future of Southern Bag," Dickinson said.

Dickinson concluded by saying that Southern Bag and the Delta have had a reciprocally positive relationship over the years.

"We have provided for almost 40 years, a good, stable employer to the people in Yazoo City. People who live in the area know that there is a good employer that they can go to and make a career for themselves. The Delta provides for us a sense of community and a sense of family where people are used to knowing each other and working together and it provides the type of atmosphere that we want." DBJ