Sonoco invests more than $25 million to expand wood reel capacity

Sonoco Products Co. is investing more than $25 million since 2024 to expand wood reel capacity in Hartselle, Alabama, and Jefferson, Texas, citing demand from AI data centers and grid modernization.

Sonoco Products Co. is expanding its wood reel manufacturing and assembly network, investing more than $25 million since 2024 to increase capacity at Hartselle, Alabama, and Jefferson, Texas. An announcement said the investments were made to keep pace with rising demand for power and communications cable packaging tied to AI data center growth and power grid modernization.

The projects have increased the companys manufacturing capacity and footprint by more than 30% across the two locations. “These investments strengthen our ability to deliver reliable, local service to customers across key growth markets while improving manufacturing quality and capacity,” said Sonoco Global Industrial Paper Packaging President James Harrell. At Hartselle, when completed, the expansion will add about 15% incremental nailed-wood manufacturing capacity and increase floor space by roughly 33%, creating room for future growth. The project also includes upgraded quality inspection systems and advanced manufacturing technology aimed at improving throughput and consistency.

Sonoco said it ships manufactured reel components to a nationwide network of assembly centers, where the reels are assembled before delivery to customers. The company currently operates 22 assembly centers across the country, positioned close to customers to support faster response times and lower logistics costs amid growing demand. Founded in 1899, Sonoco is a global packaging supplier serving consumer and industrial markets. The company said it had net sales of $7.5 billion from continuing operations in 2025 and employs about 22,000 people in 263 operations across 37 countries.

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