The construction of this plant followed very closely upon the building of Hillside Cotton Mills, of which it formed a part. A separate charter for this plant was granted on November 4, 1927, to Cason J. Callaway, Henry G. Smith, and Grady S. Kennington. As the name implies, it was a plant for the utilization of cotton waste. In the merger of 1932, the plant has lost its corporate identity.