Press Releases July 30, 2026 04:45 PM

Sonoco Expands Wood Reels Manufacturing and Assembly Capacity to Meet Growing Market Demand

Sonoco Expands Wood Reels Capacity to Support Surging Demand from AI Data Centers and Power Grid Modernization

By Priya Menon
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Sonoco Products Company is investing over $25 million to expand its Wood Reels manufacturing and assembly capacity across its Hartselle, Alabama, and Jefferson, Texas sites. This expansion aims to meet increased demand for power and communications cable packaging driven by growth in AI data centers and power grid upgrades. The investment increases manufacturing capacity by more than 30%, enhances quality inspection, and improves throughput and consistency. The company operates a nationwide network of 22 assembly centers close to customers to reduce logistics costs and deliver faster service.

Sonoco Expands Wood Reels Manufacturing and Assembly Capacity to Meet Growing Market Demand
SON
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Key Points

  • Sonoco has invested over $25 million since 2024 to expand Wood Reels manufacturing capacity by more than 30% in key US sites.
  • Growth in AI data centers and power grid modernization are significantly increasing demand for power and communications cable packaging products.
  • The company's nationwide network of 22 assembly centers enables faster delivery and lower logistics costs, strengthening market responsiveness.

HARTSVILLE, S.C., July 30, 2026 (GLOBE NEWSWIRE) -- Sonoco Products Company (NYSE: SON), a global leader in high-value sustainable metal and paper packaging, today announced continued investment to expand its Wood Reels manufacturing and assembly footprint to meet a surge in demand for power and communications cable packaging driven by AI data center growth and power grid modernization.

Since 2024 (including planned 2026 expenditure), Sonoco has invested just over $25 million to expand Wood Reels manufacturing and assembly capabilities. Those investments have grown the Company’s manufacturing capacity and footprint by more than 30% across the Hartselle, Alabama and Jefferson, Texas sites.

“These investments strengthen our ability to deliver reliable, local service to customers across key growth markets while improving manufacturing quality and capacity,” said James Harrell, President of Sonoco Global Industrial Paper Packaging.

The Hartselle expansion will add roughly 15% incremental nailed wood manufacturing capacity at that site and increase manufacturing floorspace by about 33%, creating room for future growth. The project also includes upgraded quality inspection systems and advanced manufacturing technology to improve throughput and consistency.

Sonoco ships manufactured reel components to a nationwide network of assembly centers where reels are assembled and shipped to customers. Today, the Company operates 22 assembly centers across the country located close to customers, enabling faster response times and lower logistics costs as customer requirements grow.

About Sonoco
Founded in 1899, Sonoco (NYSE: SON) is a global leader in value-added, sustainable metal and paper consumer and industrial packaging. As a member of the Fortune 500, the Company had net sales of $7.5 billion from continuing operations in 2025 and has approximately 22,000 employees working in 263 operations in 37 countries, serving some of the world’s best-known brands. Guided by our purpose of Better Packaging. Better Life., we strive to foster a culture of innovation, collaboration and excellence to provide solutions that better serve all our stakeholders and support a more sustainable future. Sonoco was proudly named one of the World’s Most Admired Companies by Fortune in 2026 as well as one of America’s Most Admired and Responsible Companies by Fortune and Newsweek. In 2025, the Company was included on USA TODAY’s list of America’s Climate Leaders. For more information on the Company, visit our website at www.sonoco.com.

Contact:Roger Schrum 843-339-6018 [email protected]  

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8d820ded-898c-49e2-ae4f-1f2271675ab4


Risks

  • Potential delays or cost overruns in the ongoing manufacturing expansion projects could impact delivery and financial performance.
  • Relying on demand growth from AI data centers and power grid upgrades exposes Sonoco to sector-specific risks if those projects slow down or are delayed.
  • Competition in sustainable packaging and rapid technological changes in manufacturing might require further investments beyond current plans.

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