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

Sonoco (NYSE: SON) announced further investment to expand its Wood Reels manufacturing and assembly footprint to serve rising power and communications cable packaging demand linked to AI data center growth and power grid modernization.

Rhea-AI Summary

Sonoco (NYSE: SON) announced further investment to expand its Wood Reels manufacturing and assembly footprint to serve rising power and communications cable packaging demand linked to AI data center growth and power grid modernization. Since 2024, including planned 2026 spending, Sonoco has invested just over $25 million in this business.

According to Sonoco, these investments have increased Wood Reels manufacturing capacity and footprint by more than 30% across its Hartselle, Alabama and Jefferson, Texas sites. The Hartselle project adds roughly 15% nailed wood manufacturing capacity and about 33% more floorspace, alongside upgraded inspection systems and advanced technology. Sonoco supplies components to a network of 22 U.S. assembly centers located near customers, and reported $7.5 billion in 2025 net sales from continuing operations.

Positive

• $25 million invested in Wood Reels capacity since 2024, including planned 2026 spend
• 30%+ increase in Wood Reels manufacturing capacity and footprint at Hartselle and Jefferson sites
• 15% incremental nailed wood manufacturing capacity and 33% more floorspace at Hartselle
• 22 U.S. assembly centers enable faster response times and lower logistics costs
• $7.5 billion 2025 net sales from continuing operations with a global production footprint

Negative

• None.

Argus Jul 31 session 5 alerts

-0.81% close to close 0.5x rel. volume Open Argus

Details

News Market Reaction – SON

$5.75B Market Cap

In the Jul 31 session, SON declined 0.81%, reflecting a mild negative market reaction. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

Sonoco’s recent record included a 2.12% reaction to earnings, a 1% reaction to its dividend declarat...

Analysis

Sonoco’s recent record included a 2.12% reaction to earnings, a 1% reaction to its dividend declaration, and a 4.81% reaction to corporate recognition. The effective S-3ASR shelf has no stated capacity, while short positioning is moderate.

Key Figures

Investment: just over $25 million Capacity and footprint growth: more than 30% Incremental capacity: roughly 15% +5 more

Investment

just over $25 million

Since 2024, including planned 2026 expenditure

Capacity and footprint growth

more than 30%

Across Hartselle, Alabama and Jefferson, Texas sites

Incremental capacity

roughly 15%

Hartselle nailed wood manufacturing capacity

Floorspace increase

about 33%

Hartselle expansion

Assembly centers

22

Nationwide network operated by the company

Net sales

$7.5 billion

2025 continuing operations

Employees

approximately 22,000

Company-wide workforce

Operations

263

Across 37 countries

Historical Context

5 past events · Latest: Jul 22

5 events

1. Jul 22

   Earnings report

   24h Move

   +2.1%

   Adjusted earnings increased and full-year 2026 guidance was reaffirmed.

2. Jul 15

   Dividend declaration

   24h Move

   +1.0%

   Quarterly dividend declaration extended the annual increase streak.

3. Jun 22

   Earnings scheduling

   24h Move

   -0.4%

   The company scheduled its second-quarter 2026 results release and conference call.

4. Jun 09

   Corporate recognition

   24h Move

   +4.8%

   Sonoco returned to the FORTUNE 500 based on 2025 sales.

5. Jun 08

   Price increase

   24h Move

   +0.3%

   The company announced recycled paperboard and converted product price increases.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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
	roger.schrum@sonoco.com

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What wood reels capacity expansion did Sonoco (NYSE: SON) announce on July 30, 2026?

Sonoco announced continued investment to expand its Wood Reels manufacturing and assembly footprint in the United States. According to Sonoco, this program targets rising cable packaging demand tied to AI data centers and grid modernization, increasing capacity and footprint across Hartselle, Alabama and Jefferson, Texas.

How much is Sonoco investing in wood reels manufacturing and assembly capacity for SON shareholders?

Sonoco has invested just over $25 million in Wood Reels capacity since 2024, including planned 2026 expenditure. According to Sonoco, this spending expands manufacturing capacity and footprint by more than 30% across key sites, aiming to align supply with growing customer demand.

How will Sonoco's Hartselle, Alabama expansion impact wood reels manufacturing capacity for SON?

The Hartselle expansion will add roughly 15% incremental nailed wood manufacturing capacity at that site. According to Sonoco, it will also increase manufacturing floorspace by about 33%, while adding upgraded quality inspection systems and advanced technology to improve throughput and product consistency.

How many wood reel assembly centers does Sonoco operate, and why does this matter for SON investors?

Sonoco operates 22 wood reel assembly centers across the United States located near customers. According to Sonoco, this network supports faster response times and lower logistics costs as customer requirements expand, which may enhance service levels in growth markets like power and communications cables.

What were Sonoco's 2025 net sales and global footprint as referenced in the SON wood reels update?

Sonoco reported $7.5 billion in 2025 net sales from continuing operations. According to Sonoco, the company has about 22,000 employees in 263 operations across 37 countries, serving major consumer and industrial brands with metal and paper packaging solutions.

How is AI data center growth driving demand for Sonoco's wood reels packaging business (SON)?

AI data center growth is contributing to a surge in demand for power and communications cable packaging. According to Sonoco, this trend, along with power grid modernization, underpins the company’s decision to expand Wood Reels manufacturing and assembly capacity in the United States.