Sonoco Products Company (NYSE: SON) announced it has invested just over $25 million since 2024, including planned 2026 expenditures, to expand its wood reels manufacturing and assembly operations, according to a press release from the Hartsville, S.C.-based company.

The investment has grown manufacturing capacity and footprint by more than 30% across two sites in Hartselle, Alabama and Jefferson, Texas. The Hartselle expansion is expected to add roughly 15% incremental nailed wood manufacturing capacity at that location and increase manufacturing floor space by about 33%. The project also includes upgraded quality inspection systems and advanced manufacturing technology.

Sonoco cited demand for power and communications cable packaging tied to AI data center growth and power grid modernization as drivers of the expansion.

"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.

Sonoco ships manufactured reel components to a network of assembly centers where reels are assembled and distributed to customers. The company currently operates 22 assembly centers across the United States.