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Sabo Adds North America to Its Worldwide Manufacturing Footprints

Sabó USA, Inc. plans to invest $10,000,000 in the next 3 to 4 years on its first manufacturing facility in North America. Total investment in the facility is expected to reach $18,000,000 in the future. Sabó USA is a subsidiary of the Sabó Group – a global leader in the development of sealing and fluid conveyance technology with manufacturing locations in Brazil, Argentina, Germany, Austria, Hungary, and now, the United States.

Sabó USA will begin its North American operations with a 30,000 square foot facility on a 13 acre site in the Lincoln County Industrial Park. The facility is projected to expand to 100,000 square feet. The company will create 50 jobs within its first year of operation and plans to increase to 200 employees in the future. “This is an incredibly exciting project for Lincoln County and, therefore, all of Charlotte USA. It’s a great example of another quality international client who will add further strength to the automotive parts industry, one of the region’s critical target sectors,” commented Kenny McDonald, Senior Vice President, Economic Development Services; Charlotte Regional Partnership.

When Sabó decided to establish a manufacturing facility in North America, it began its search by evaluating several well known sites in Mexico. This decision was based on the myth that the United States was no longer competitive enough to justify new plant investments. Even though Mexico had some positive attributes, certain shortcomings prompted Sabó to re-evaluate its premises and investigate the United States as an option for its new site –  specifically 11 eastern states. After a thorough study of several counties in these 11 states, Sabó selected Lincoln County.

Undoubtedly, the business friendly attitude from the county and state played a significant role in Sabó’s decision. “County and state officials demonstrated that not only a large pool of qualified workforce was readily available, but they also offered incentives for additional training,” said R. Panico Peres, Vice President of Sabó USA, Inc. “This type of commitment is very important to our company and very much in line with our strategic drivers, especially when we consider that Sabó conquered its space as Tier 1 supplier to key U.S. companies by providing technological sealing solutions.”

Lincoln County Board of Commissioner’s chairman Tom Anderson commented, “We welcome Sabó USA, Inc. to the growing international presence in the Lincoln County Industrial Park and look forward to their success in this facility. We are pleased that they have chosen Lincoln County as the site for their first North American operation. We believe that this is continuing evidence of Lincoln County’s dedication to providing a business friendly environment that is recognized by industries seeking to locate new facilities.”

“Without the involvement of the Charlotte Regional Partnership and the support from the State, this project would not have occurred in Lincoln County,” commented Barry Matherly, Executive Director of the Lincoln Economic Development Association. “It is a good example of the positive effects of collaboration.”

“The decision to install our first manufacturing plant in the U.S. resulted primarily from recognizing that we needed to expand our manufacturing capacity to accommodate the growth in the North American market,” stated José Eduardo Sabó, President and CEO of the Sabó Group. He then continued: “And, expanding closer to the customer made a lot of sense. Moreover, our considerable presence and leadership in the European and South American markets limits our growth potential due to the current forecast for immaterial growth for the next few years. With this in mind, our Board has directed us to focus in the U.S. market where the majority of our growth will come from.”