Southwire to Invest $256M in Starkville, Mississippi Plant Expansion, Creating 130 Jobs

Wire, Cable Maker to Spend $256M on Mississippi Plant Expansion
CRE Market Beat Take
Southwire’s fee-in-lieu-backed plant expansion signals local willingness to deploy tax incentives to attract large-scale industrial investment, supporting long-term occupier demand.

Southwire is moving forward with a major expansion of its manufacturing operations in Starkville, Mississippi, committing more than $256 million to enlarge its existing wire and cable plant. The Georgia-based manufacturer, which first acquired the Starkville facility in 1989, plans to significantly scale up production capacity at the site as part of this investment.

The project will add approximately 380,000 square feet to the plant’s existing footprint, positioning the facility for a substantial increase in output. In addition to expanding the building, Southwire expects the project to create approximately 130 new jobs in the community, further deepening its long-standing presence in Starkville.

Construction on the Starkville expansion is slated to begin in late 2026. Following the build-out and ramp-up period, the facility is expected to reach full capacity in 2028. Once the expansion is complete, Southwire anticipates that the plant’s monthly production of cable and electrical wire will grow by about 300%, reflecting the scale of the additional space and capital being deployed at the site.

The expansion has also been notable on the incentives front. The project was announced as the first successful fee-in-lieu agreement in Oktibbeha County, marking a new approach to supporting large-scale corporate investment in the area. Under a fee-in-lieu structure, companies that invest at least $60 million can be exempt from property taxes for up to 10 years.

Instead of paying standard property taxes, qualifying companies make an agreed fee payment to local jurisdictions, including the city, county and school district. This framework is designed to encourage substantial capital investment while still providing a revenue stream to public entities. Southwire’s Starkville project demonstrates how this structure can be applied to industrial manufacturing expansions.

By combining a sizable capital commitment, significant square footage expansion and a multi-year construction and ramp-up timeline, the Starkville initiative underscores Southwire’s intent to scale its production capabilities in cable and electrical wire. The investment also highlights how local governments can deploy fee-in-lieu mechanisms to attract and support large industrial projects while balancing tax policy and economic development goals.

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