Gestamp Corp. to build $90M Plant. VW Supplier to build Enterprise South Plant.
Gestamp Corp., which unveiled plans to build a $90 million plant and employ at least 230 people within three years at the Tyner site, is paying for the land, unlike Volkswagen.
Mayor Ron Littlefield said Gestamp, which will supply structural components for the new midsized sedan VW plans to build at its nearby plant, is paying about $35,000 an acre for a 49.7-acre tract, or about $1.74 million.
Gestamp’s new facility will go up near the intersection of Hickory Valley Road and Discovery Drive, close to the Hamilton County Schools offices and VW’s $1billion plant.
Trevor Hamilton, vice president of economic development for the Chattanooga Area Chamber of Commerce, said Gestamp is the first of the tier one suppliers to come to the area. Tier one companies typically need to be close to an auto assembly plant because of the key parts they produce.
Mr. Hamilton said Chattanooga continues to land companies and jobs despite the challenging economic environment. With Gestamp, Volkswagen, Chattem, Alstom, Arch Plastics, and Dixie Industries, more than 2,800 jobs have been recruited in the region, he said.