Staff photo by Dan Henry/Chattanooga Times Free Press The Enterprise South complex includes Volkswagen, Erlanger, and Amazon.com.

A North Carolina-based tire distributor plans to build a facility in Chattanooga, investing up to $20 million and creating 40 jobs, officials said Tuesday.

American Tire Distributors is to construct a 125,000-square-foot distribution center at Enterprise South industrial park, according to the Chattanooga Area Chamber of Commerce.

J.Ed. Marston, the Chamber's vice president of marketing, said the business distributes tires to retailers.

"It was interested in our logistical assets," Marston said, adding that the company is not related to the nearby Volkswagen auto assembly plant.

Average annual wages for the jobs, to be created over three years, are expected to average $50,000, the Chamber said.

"They're better-than-average paying jobs," Marston said.

ATD is to buy a nine-acre tract across from eSpin Technologies on Discovery Drive.

Marston said the company will seek tax incentives for the project. The company will meet with the Hamilton County Commission on Thursday at 9:30 a.m.

County Mayor Jim Coppinger said in a statement that Chattanooga has a national reputation for its logistics industry.

"ATD's decision to locate here only further reinforces our region's growing foothold as a hub for this sector of business," he said.

Chattanooga Mayor Ron Littlefield said ATD "boasts a very strong record of success." Privately held ATD has 97 distribution centers in 40 states. It serves more than 124,000 tire, wheel and automotive service retailers nationwide, according to the Chamber.

Already ATD has four sites in Tennessee with locations in Johnson City, Knoxville, Memphis and Nashville.

Bill Hagerty, the state economic and community development commissioner, said ATD's decision to expand its presence in Tennessee "represents a win for existing industry and growing confidence in the statewide economy."

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