A Spanish firm will build a $90 million facility and add 230 jobs within three years at the Enterprise South Industrial Park.

Gestamp Corporation will be the first tier-1 supplier for the $1 billion Volkswagen plant.

The firm, which supplies VW plants around the world, will be located on the west side of the industrial park.
The firm plans to break ground in August.

Local officials hailed the announcement saying they expect it will be the first of many.

Gestamp has secured a contract to supply structural components for the production of the new mid-sized sedan that Volkswagen has designed specifically for the U.S. market. In addition, Gestamp, a global supplier, provides a wide range of technologies and products for many other automotive companies including Mercedes, Renault-Nissan, PSA Peugeot Citroen, Chrysler, GM, BMW and Toyota, among others. The newly established facility will support and extend Gestamp’s ability to supply its broad base of customers.

“We’re pleased to be able to continue our strong working relationship with Volkswagen,” said Jeff Wilson, president and chief operating officer for Gestamp. “I firmly believe the excellent business climate and skilled workforce of Chattanooga and Tennessee will allow us to benefit from the same qualities Volkswagen found here and to continue our company’s long term growth.

“I also want to express my sincere appreciation for the support and leadership we’ve received from Mayor Ramsey, Mayor Littlefield, Commissioner Kisber and the Chattanooga Chamber.”

“We welcome Gestamp as the first ‘tier 1’ auto supplier to follow Volkswagen to Chattanooga,” said County Mayor Claude Ramsey. “The Gestamp project is further confirmation of our community’s foresight in developing Enterprise South as a job creation engine for our economy.”

“I applaud Gestamp for investing in our economy and creating 230 new, family-wage jobs at a time when our citizens need them the most,” said Mayor Ron Littlefield. “Thanks to Gestamp, we are a step closer to realizing our vision of making Chattanooga an automotive manufacturing hub.”

“When Volkswagen announced plans to locate in Chattanooga, we celebrated the 2,000 jobs VW would create, but at the same time said additional job creation would follow,” said Tennessee Economic Development Commissioner Matt Kisber. “We’re pleased Gestamp North America has followed that announcement with their investment, which will continue the momentum we’re building in Tennessee around the automotive industry.”

“In recruiting Gestamp, we again demonstrate the effectiveness of a proactive job creation strategy based on public-private partnership,” said Trevor Hamilton, vice president of economic development for the Chattanooga Area Chamber of Commerce. “Despite this challenging economic environment, Chattanooga continues to build momentum as companies like Alstom, Volkswagen, Chattem, Arch Plastics, Dixie Industries and now Gestamp make sizable investments that are directly creating over 2,800 new jobs.”

Gestamp Corporation, which is headquartered in Michigan, is a subsidiary of Gestamp Automocion, a privately held company based in Madrid, Spain. Gestamp generates $7 billion in sales each year through manufacturing operations at 75 sites all over the world. Gestamp supplies Volkswagen in various countries in Europe and is presently building new plants in Russia, India and Argentina which will supply Volkswagen.

Although Gestamp is not taking applications at this time, job seekers are invited to monitor job postings through the local media and the Tennessee Career Centers.

Nick Proctor, a veteran of 20 years in the automotive industry, will be the plant manager.