07/31/2008 15h28

Ninth Sabó plant abroad to be in India

Gazeta Mercantil – 07/31/2008

Sabó, the Brazilian multinational producer of components for the car industry, moves forward with its internationalization program and aims its strategies at India, an emerging market that draws the attention of the great international makers due to the strong perspective of expansion that has been taking place in the other countries of the Bric (Brazil, Russia and China). "We are analyzing the possibilities of going into the Indian market in 2009, either by means of the acquisition of a local producer or by the supply of parts for a maker in that country", said Luis Gonzalo Guardia Souto, CEO of the company for South America. The Indian unit will be the 11th plant of Grupo Sabó and the ninth unit abroad. After keeping its commercial office for two years, the company inaugurates, in October, its plant in China, in Wuxi (located between Beijing and Nanjing, two large Chinese cities). The investment of US$ 10 million will be subsidized by the Chinese government. The unit will have 10 thousand square meters and it will use 20% of its capacity. The retainers produced in China will have Brazilian and German technology. Because of the good moment for the sale of cars in Brazil, Sabó will increase the level of use of its plant located in Mogi Mirim, in the interior of São Paulo. "From 65% of use of the capacity, we will increase it to 80% until the end of the year in order to meet the demand of the local market", observed the director of the company. Grupo Sabó currently sells US$ 350 million. Of this total, 60% come from operations abroad and from the Brazilian exportations. For this year, the Officer estimates the earnings grow 20% and increased from US$ 13.5 million to US$ 17 million. In Brazil, the earnings are expected to grow 7.89% and exceed the R$ 380 million (US$ 196.9 million) registered in 2007 to R$ 410 million (US$ 256.3 million) this year. Within the scope of its internationalization program Sabó already has its flag set in Germany, where it has three industrial units; in Austria and Hungary. In Japan, the Brazilian company keeps its office opened since 2007 and, after several negotiations and tests, it received the first orders from a systemist (auto parts' company that supplies ready-to-use modules for car makers) and a car maker in that country.