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HARTSVILLE, S.C. - Sonoco Products Company (NYSE:SON), a $4.55 billion market cap packaging solutions provider with annual revenue of $5.7 billion, announced Tuesday a $30 million capital investment to expand its production capacity in the adhesives and sealants market, adding 100 million units of annual capacity.
The investment will enhance existing production lines and install new ones across three strategically located facilities to improve supply chain resilience and customer access to materials.
"This investment strengthens our ability to deliver high-quality products while reinforcing our position as a trusted partner in the adhesives and sealants market," said Elizabeth Rhue, Vice President and General Manager of Rigid Paper Containers North America at Sonoco.
Orange County Mayor Jerry L. Demings welcomed the expansion, noting it "underscores the strength of our regional economy and reinforces the importance of supporting businesses that help diversify our economy."
Tim Giuliani, President and CEO of the Orlando Economic Partnership, added that his organization assisted Sonoco with permitting and navigating the expansion process in Orange County.
Sonoco, founded in 1899, operates approximately 285 facilities across 40 countries with 23,400 employees. The company provides metal and fiber packaging solutions for consumer and industrial markets.
The expansion comes as demand for adhesives and sealants continues to grow, according to the company’s press release statement.
In other recent news, Sonoco Products Company reported its first-quarter 2025 earnings, which fell short of analyst expectations. The company’s adjusted earnings per share (EPS) were $1.38, below the forecasted $1.42, and revenue was $1.7 billion, missing the anticipated $2.02 billion. Despite the earnings miss, Sonoco achieved a 31% increase in net sales and a 38% rise in adjusted EBITDA, reflecting strong operational execution. UBS analysts initiated coverage on Sonoco with a Neutral rating and a $48 price target, noting the company’s transition to larger-scale businesses but expressing concerns about growth in the European food can segment. Sonoco’s leverage for 2025 is projected to be around 4.0x, higher than historical levels, but the firm noted an attractive free cash flow yield of approximately 11% for 2026. Sonoco also announced the appointment of Paul Joachimczyk as the new Chief Financial Officer, effective June 30, 2025, succeeding Jerry Cheatham. Joachimczyk brings experience from American Woodmark Corporation and other finance leadership roles. These developments highlight Sonoco’s ongoing strategic adjustments and financial performance.
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