An auto supplier partly owned by a Chinese company has leased a building near Volkswagen's Chattanooga plant where it's expected to provide interiors to the automaker and create over 300 jobs.
Yanfeng USA Automotive Trim Systems has leased a 231,625-square-foot industrial building at 7463 Bonnyshire Drive, according to a Michigan real estate company.
On Yanfeng's website is a listing for 20 jobs in Chattanooga, including plant superintendent, manufacturing engineering manager and logistics supervisor.
In March, a company official said the supplier was looking for space in which to open a plant in the Chattanooga area and create 330 jobs.
Kerri Szalony, who directs human resources for Yanfeng's U.S. headquarters in Michigan, said then it planned to set up a multi-million-dollar operation to supply parts for the new sport utility vehicle that VW plans to assemble at the plant late next year.
She declined comment on Thursday.
But the building on Bonnyshire Drive that Yanfeng is leasing now holds Tennessee Enterprises Inc., a furniture wholesaler. Denise May of TEI said Thursday that Yanfeng officials already were on site.
"They're moving in right now," she said. May said TEI is moving to nearby Bonny Oaks Industrial Park.
The Chattanooga Area Chamber of Commerce, VW and state economic developers wouldn't comment Thursday about Yanfeng's expansion into Chattanooga.
Last week, Spanish auto supplier Gestamp unveiled plans to expand its existing plant in Chattanooga and build another next to VW's supplier park at Enterprise South industrial park. Gestamp officials said it would create more than 500 new jobs.
Yanfeng last year agreed to a joint venture with Johnson Controls to create what it calls the largest auto interiors company in the world with revenues of about $7.5 billion. Yanfeng holds a 70 percent share in the venture.
Yanfeng is part of Shanghai Automotive Industry Corp. (SAIC), which has a joint venture with VW to produce vehicles in China. VW has a number of assembly plants in China and has become the No. 1 selling automaker in what is now the world's top market by sales.
VW is spending $900 million on an expansion to its Chattanooga factory to build the SUV in addition to the Passat sedan, which it has assembled there since 2011.
VW plans to hire 2,000 more workers in addition to the 2,400 who already work at the plant.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.