Sonoco Products Company is expanding its wood reel manufacturing capacity in the United States, investing more than US$25 million to support growing demand for power and communications cable packaging driven by artificial intelligence (AI) data centers and electric grid modernization.

The latest investment strengthens Sonoco’s industrial paper packaging business as infrastructure projects continue to increase demand for cable transportation and storage solutions.

Investment Increases Manufacturing Capacity

Since 2024, including planned expenditure for 2026, Sonoco has invested just over US$25 million to expand its wood reel manufacturing and assembly operations.

According to the company, the investment has increased manufacturing capacity by more than 30% across its facilities in:

• Hartselle, Alabama
• Jefferson, Texas

The expansion is intended to improve production capability while supporting customers in the rapidly growing energy and communications sectors.

Hartselle Facility Undergoes Major Upgrade

At the Hartselle manufacturing site, Sonoco is expanding both production capacity and factory space.

Key improvements include:

• Approximately 15% additional nailed wood reel manufacturing capacity
• Around 33% expansion of manufacturing floor space
• Advanced manufacturing technologies
• Upgraded quality inspection systems

The company said the project is designed to improve production efficiency, product consistency and provide additional room for future growth.

Supporting Growing Cable Infrastructure

Wood reels play a critical role in transporting and storing power transmission, telecommunications and fiber optic cables.

Demand for these products has accelerated alongside investment in:

• AI data centers
• Electrical grid modernization
• Broadband expansion
• Telecommunications infrastructure

As utilities and technology companies expand network capacity, manufacturers are increasing production of cable packaging systems to support supply chain requirements.

Nationwide Assembly Network

In addition to manufacturing reel components, Sonoco operates a nationwide assembly network designed to improve customer responsiveness.

The company currently operates 22 assembly centers across the United States, allowing manufactured components to be assembled closer to customer locations.

This decentralized approach helps reduce transportation costs while shortening delivery times for cable manufacturers and infrastructure projects.

Industrial Packaging Demand Continues to Grow

While Sonoco is widely recognized for its consumer packaging business, industrial paper and wood packaging remains an important growth segment.

The latest investment reflects increasing demand for packaging solutions supporting large-scale infrastructure development, particularly in sectors benefiting from digitalization and energy transition investments.

As AI computing capacity expands and governments continue upgrading electricity transmission networks, suppliers of industrial packaging products—including cable reels—are expected to benefit from sustained infrastructure investment over the coming years.

Last Updated on 04/08/2026 by Jota Machinery