Gestamp Corp. Invests $90 Million in Chattanooga Plant, Creating 230 Jobs

Strategic Insights -

Automotive manufacturing investment continues to grow in the Chattanooga area, with Gestamp Corp. announcing plans to build a $90 million auto parts stamping plant in the Enterprise South Industrial Park. The new plant, which could create 230 jobs within three years, will supply structural components for Volkswagen's new midsized sedan designed for the U.S. market. Gestamp already supplies parts for major auto manufacturers such as Mercedes, Renault-Nissan, PSA Peugeot Citroen, Chrysler, General Motors, BMW, and Toyota.

Key Takeaways:

  • Gestamp Corp. is investing $90 million to build an auto parts stamping plant in Chattanooga's Enterprise South Industrial Park.
  • The new plant, expected to create 230 jobs within three years, will supply structural components for Volkswagen's new midsized sedan.
  • Gestamp has secured a contract to supply parts for all its customers, including Volkswagen, in addition to its existing customers such as Mercedes, Renault-Nissan, PSA Peugeot Citroen, Chrysler, General Motors, BMW, and Toyota.
  • The investment is a continuation of the momentum building in Tennessee and around the automotive industry, as stated by Tennessee Commissioner of the Department of Economic and Community Development, Matt Kisber.
  • Hamilton County Mayor Claude Ramsey noted that Gestamp is the first tier 1 auto supplier to follow Volkswagen to Chattanooga, further confirming the community's foresight in developing Enterprise South as a job creation engine for the economy.
  • Gestamp Corp. is a subsidiary of Gestamp Automocion, a privately held company based in Madrid, Spain, with annual sales of $7 billion and manufacturing operations in 75 sites around the world.

Statistics:

  • $90 million: The investment amount Gestamp Corp. is making to build the new auto parts stamping plant in Chattanooga.
  • 230: The number of jobs expected to be created within three years at the new Gestamp plant.
  • 2,000: The number of jobs Volkswagen plans to create in Chattanooga.
  • 75: The number of sites where Gestamp has manufacturing operations around the world.
  • $7 billion: The annual sales of Gestamp Corp.

Sources:

  • The Knoxville News-Sentinel, Tenn. (June 25, 2009)
  • McClatchy-Tribune Information Services (June 25, 2009)