Volkswagen's first supplier at Enterprise South industrial park is testing production as the parts company's $90 million factory powers up.
"The plant itself is practically done," said Nick Proctor, who's directing Gestamp Corp.'s 225,000-square-foot facility on Hickory Valley Road.
Mr. Proctor said Gestamp, which will provide VW's nearby Chattanooga production plant with stamped parts and welded assemblies for the automaker's new car, has made test runs at its 49.7-acre plant site.
"We've made some very preliminary tryouts," he said, adding that it has brought on about 41 workers so far of the 230 employees it expects to hire.
But, Mr. Proctor said, no products have been made for shipping to VW yet.
"Some equipment is installed," he said, with more to arrive in the next 30 to 60 days.
J.Ed. Marston, the Chattanooga Area Chamber of Commerce's vice president of marketing, said Gestamp is Enterprise South's first tier-one supplier.
"Gestamp represents our fondest hope when we got the good news VW would be investing in Chattanooga," he said.
Mr. Marston said the Chamber continues to woo other companies to land at Enterprise South in addition to pitching Volks-wagen's supplier park. Gestamp's new plant is not in the VW supplier park.
"They (Volkswagen) have got a strong interest in getting as many suppliers as close to the industrial park as possible," he said.
VW has announced the names of five tenants in its new supplier park, now being built next to its plant. Along with two other companies VW plans to bring into the park soon, the seven businesses are expected to create about 500 new jobs.
Gestamp officials expect to be up to 80 to 100 employees by the end of the year. VW expect to begin production in early 2011.
AT ENTERPRISE SOUTHAbout 4,000 people are now working at the Volkswagen site at Enterprise South in construction for contractors or subcontractors or for the automaker itself.ABOUT GESTAMPWith U.S. headquarters in Troy, Mich., Gestamp is a subsidiary of Gestamp Automocion based in Spain.
Mr. Proctor said that around August, Gestamp will undergo "build events" with VW as the supplier tests its equipment.
How soon Gestamp hires more workers next year will depend upon VW, he said.
"That's going to depend ... on volumes," Mr. Proctor said.
Mr. Proctor said it will be August before the plant is fully functional. Gestamp has received a 14-year property tax break as an incentive to building in Hamilton County. It recently received approval for the tax break to start in 2011.
Gestamp officials have said they've built is with expansion in mind as VW grows its business.
VW plans to produce 150,000 vehicles a year at its $1 billion assembly plant. The company plans to produce a new midsize sedan.