ARTICLE TOOLS
While Volkswagen’s planned new assembly plant gets the attention, it’s the suppliers to the facility and other businesses which will create almost five times as many jobs, a study shows.
However, state officials said Friday they did not mandate that Volkswagen compel a certain number of suppliers to locate in Tennessee.
“This is a region that has to be looked at,” said Matt Kisber, Tennessee’s Economic and Community Development commissioner.
He added that VW has said it plans to locate a number of suppliers adjacent to the $1 billion plant at Enterprise South Industrial Park.
State officials estimate that the 2,000 jobs at the assembly plant will spin off about 9,477 other jobs.
Hamilton County Mayor Claude Ramsey said a number of Tennesseans work in North Georgia and vice versa.
FAST FACT
A University of Tennessee study projects the VW plant and other businesses will create $55 million in new tax revenue annually.
“It is the regional concept,” he said. Mr. Ramsey added, Hamilton County will aggressively pursue suppliers and recently talked with a prospect that could bring up to 700 jobs.
“The plant gives us an advantage,” he said.
Mr. Kisber said tier one suppliers will need to be in close proximity to the plant, which is slated to start making cars by early 2011.
He said his office, which recruits industry to Tennessee, is busier working potential projects than anytime in the 5 1/2 years in which he has held his post despite the slow economy.
William Fox, who directs the University of Tennessee’s Center for Business and Economic Research, said there is a “much higher supplier effect” with assembly plants than other automotive activity.
He said there could be 2,000 supplier jobs in close proximity to the plant.
Chattanooga Mayor Ron Littlefield said the plant will be VW’s North American headquarters for manufacturing.
Share This...
These icons link to social bookmarking sites where readers can share and discover new web pages.This document may not be reprinted without the express written permission of Chattanooga Publishing Company, Inc.



Comments
Post a comment
Commenting requires registration.