Carrollton, Ga.-based Southwire Co. LLC is in the midst of a realignment that has led to the closure of its nylon cable tie injection molding plant in Crestview, Fla., with production moving to Honduras and investments being made elsewhere.
Founded in 1950, family-owned Southwire manufactures and supplies building wire and utility cable as well as the tools used in their installation for the industrial, electrical, energy and OEM markets.
Sales were about $9 billion in 2023, Southwire President and CEO Rich Stinson said in a November 2023 blog.
A month later, Southwire officials announced the pending closures of facilities in Florida and China.
Southwire acquired the Florida operation, which was previously called American Elite Molding, in November 2020 from founder Robert Sires, who had opened it in 2004.
Sires grew the business to a 24/7/365 manufacturing operation that employed 175 people at a 75,000-square-foot facility and enjoyed 15 years of double-digit growth, according to his LinkedIn profile.
AEM was producing more than 1.5 billion cable ties a year with $35 million in sales at the time of the sale to Southwire.
Southwire acquired AEM to support a growth strategy and goal to remain a sustainable, diversified electrical company, according to a November 2020 company news release.
In early 2021, Southwire officials said they would invest $10 million into the facility by 2025 as part of a move to grow its Tools, Components & Assembled Solutions business and drive channel growth.
"That, coupled with the fact that 70 percent of cable applications use cable ties during the installation process, make this modernization effort key for us to grow the TCAS business for years to come," Steve White, Southwire sales vice president, said in a release about the then-pending investment.
Four years later, however, Southwire closed the Florida plant and laid off 71 workers. Cable tie production moved to Southwire's facility in San Pedro Sula, Honduras.
"This will enable the organization to simplify and streamline similar manufacturing processes at its facilities to better meet customers' needs," a Southwire news release said.
Southwire also closed a facility in Langfang, China, effective Dec. 29, 2023.
The two plants were closed "as the company continues to align itself to best serve its markets and customers," the news release said.
"At Southwire, we are committed to serving our customers in the most efficient manner, and part of this commitment involves examining our manufacturing footprint," said Peter Lugo, senior vice president of product management for Southwire's TCAS business unit.
"While these types of decisions are never easy, this move represents the best use of our investments and ensures that Southwire continues to remain competitive in the marketplace," he said.
Meanwhile, last month, Southwire announced it will build a 50,000-square-foot research and development facility in Carrollton that will serve as an expansion of the company's Cofer Technology Center. The expansion will focus on engineering with sustainable components, such as creating cable with recyclable plastic insulation materials, a May 14 news release said.
"Our industry is experiencing unprecedented growth, driven by a global focus on sustainability, renewables, electric vehicles and grid transformation, just to name a few," said Axel Schlumberger, senior vice president of research and development. "The expansion of our R&D facilities will enable that growth in strategic growth market verticals and accelerate innovation and the development of new solutions for our core and emerging markets."
Southwire also has announced several other expansions in the last year, including the construction of a 1.2 million-square-foot distribution center in Texas and the addition of 30 percent more production capacity in Florence, Ala., where it makes commercial and residential building wire.