Spanish company plans $3.2 million expansion in Virginia Beach with 40 new jobs

A Spanish metal-stamping company plans to expand its North American headquarters in Virginia Beach and help attract more Spanish businesses to Hampton Roads.

Sanjo, a Barcelona-based manufacturing business, plans to spend more than $3.2 million to expand its footprint in Virginia Beach, according to city officials. The move will create 40 jobs with an average annual salary of $60,000 to $70,000.

Sanjo looked at relocating to Florida or Tennessee before choosing to remain in Virginia, Virginia Beach Economic Development Director Taylor Adams said at a Virginia Beach Development Authority meeting Tuesday.

The expansion will add more than 23,000 square feet to Sanjo’s Virginia Beach manufacturing plant, nearly doubling its existing 27,000 square feet of space. The Miller Group in Virginia Beach will be constructing the addition and plans to finish it by March or April.

Sanjo leaders spoke with Virginia Beach development officials before making the decision,Jorge Pallas, plant manager, said.

“They convinced us to stay in Virginia,” he said.

Plus, Virginia Beach plans to spend $350,000 from its Economic Development Investment Program on the project. Development authority members approved the spending at the Tuesday meeting. The Virginian-Pilot watched the video recording of the meeting available online.

Virginia Beach Vice Mayor Rosemary Wilson said at the meeting that she recently traveled with economic development officials to Barcelona to meet with Sanjo leaders and other European businesses.

“Sanjo has been like an ambassador for us,” Wilson said.

At the event, held at a football club, Virginia Beach officials met with business leaders and government officials, Wilson said. Because of the trip, at least five companies from Spain will be visiting Hampton Roads in September to consider setting up a Virginia Beach location, she said.

Sanjo opened its Virginia Beach facility in 2016 off Lynnhaven Parkway. It uses a process called fineblanking to cut and mold metal parts with precision. Its biggest Virginia Beach customer is chainsaw-maker Stihl. Stihl executives helped convince the company to move to Virginia Beach, according to previous Virginian-Pilot reporting.

Trevor Metcalfe, 757-222-5345, trevor.metcalfe@pilotonline.com