Staff Photo by Laura-Chase McGehee/Chattanooga Times Free Press/ Dec 3, 2010 - ACT Mouthwash was given out as favors during a news conference at Chattem plant 3.Chattanooga-based Chattem was acquired by French giant Sanofi-Aventis this year while Volkswagen closed in on finishing a $1 billion plant and Amazon.com has unveiled plans for a major facility here.
While 2010 was a challenging year for businesses, the Chattanooga area has performed better than most cities, an economic developer says.
"We're fortunate in that these major companies we've got coming in here are a diverse group," said Tom Edd Wilson, the Chattanooga Area Chamber of Commerce's chief executive. "I continue to think we're better positioned than most."
French pharmaceutical titan Sanofi-Aventis finalized its purchase of Chattem early this year for $1.9 billion in cash.
Chattem was assigned to launch the popular allergy drug Allegra as a nonprescription medication, which company CEO Zan Guerry is calling one of the industry's biggest product introductions.
"It's going to be very exciting," Guerry said about the planned spring unveiling of Allegra. He said Allegra will likely be a $250 million to $350 million a year brand when it hits store shelves.
Also, Chattem opened the biggest building expansion in its 130-year history with a $35.5 million facility off South Broad Street. The company plans to add up to 70 jobs, which would bring its employee headcount to about 500 in the city. Even more jobs could come, officials said.
At Volkswagen, its 2 million-square-foot assembly plant is nearly complete as the German automaker plans a first-quarter 2011 launch of a new midsize sedan.
"I'm 100 percent sure you will see cars on the road here in Chattanooga at the end of January," said Frank Fischer, who heads VW's Chattanooga operations. The car will go on sale in the last half of 2011, he said.
During 2010, the company hired hundreds of workers, putting its employee headcount at more than 1,200, according to VW.
Officials said the work force is expected to grow to between 2,000 and 2,500.
In addition, VW suppliers moved into a nearby supplier park and unveiled plans to hire more than 500 workers.
amazon arrives
The world's No. 1 Internet retailer, Seattle-based Amazon.com, revealed plans to build two 1 million-square-foot fulfillment centers in Hamilton and Bradley counties.
The company is investing about $139 million and wants to hire more than 1,400 full-time workers and more than 2,000 seasonal employees when its operations are fully ramped up in three years.
KEY VW PROJECTSAmong companies announcing Volkswagen-related operations this year with planned number of jobs:* Atco Industries, 150* Ceva Logistics, 140* Chattanooga Seating Systems, 120* Wallenius Wilhelmsen Logistics, 112* Thyssen Krupp, 90* M-Tek, 40* Faurecia, 35* Magna Exteriors & Interiors, 25* Draexlmaier of North America, 25* Wingard Quality Supply, 25Source: companies, VW
Fred Kiga, Amazon's director of policy, said recently that it was a fast-paced project from the beginning.
"It has been a very frenetic three and a half months since we entered negotiations with the city and Hamilton County," he said.
Amazon officials are aiming at opening the two distribution centers by Christmas 2011.
Wilson said that when a city attracts "marquee names" such as Volkswagen and Amazon, that draws national attention.
"That turns heads," he said. "That gets people asking the question 'What are they doing in Chattanooga, Tennessee? We better look at that place.'"
Wilson said that landing two 1,000-plus job projects such as VW and Amazon has come in the shadow of the recession.
"I'll bet you 95 percent of the other cities in the country would change places with our situation immediately," he said, adding that the economic development pipeline isn't empty.
Also in Bradley County, Wacker Chemical announced this month that it will increase by almost $500 million its investment in a planned plant to produce polycrystalline silicon, an element used to create solar panels.
Wacker officials also said they plan to create about 150 more jobs than originally planned.
The announcement puts the proposed plant investment at $1.45 billion and employee headcount at between 650 and 750.
Additionally, with completion of a new "flagship" Chattanooga factory this year, Alstom executives said they're ready to make the world's largest steam and gas turbines for power plants as the company prepares for America's nuclear revival.
Alstom added to its Chattanooga presence by finishing the $300 million plant on Riverfront Parkway, and the company plans to boost its work force to 350 by 2013. Alstom already employs 600 in the city at an adjacent plant that produces replacement components for coal-fired facilities.