2 German firms aim to supply VW

Two German companies are starting operations in Chattanooga to offer the Volkswagen assembly plant and its suppliers packing and logistics services.

Montara North America and Paul Muller Packaging Solutions Corp. have leased about 9,000 square feet of space off Bonny Oaks Drive near the VW plant that's slated to start production early next year.

Montara Chief Executive Officer Christoph Dimer said the company plans to invest about $500,000 in the facilities over the next three years. He said the companies could create up to 30 jobs in that period.

Mr. Dimer said the business also is aiming to service other German automakers such as Daimler's Mercedes plant in Alabama and BMW's factory in South Carolina.

"This is the new Detroit of the U.S.," he said. "This feels like a good place to be."

Jeff Jennings of NAI Charter Real Estate Corp., who represented Montara, said he has inked three deals relating to VW suppliers so far.

"The majority of the ones we've worked with so far put a premium on being close to Enterprise South" industrial park, Mr. Jennings said about the site of the VW plant. "The newer the property, the more appealing to the suppliers with which we've worked."

Mr. Dimer said the two businesses already are VW suppliers in Europe and India. They've had conversations with VW officials about the Chattanooga plant and are optimistic about securing contracts, he said.

"They want to buy from suppliers in the Chattanooga area," Mr. Dimer said about VW.

J.Ed. Marston, the Chattanooga Area Chamber of Commerce's vice president of marketing, said there has been a series of supplier announcements in recent weeks.

"We've seen steady momentum the last few weeks," he said. Last week, VW named five companies coming into a supplier park adjacent to its plant and expects two more to announce in coming weeks. The seven companies expect to create about 500 jobs, according to VW.

Mr. Dimer said Montara and Paul Muller will offer transport of VW supplier parts to the plant in containers or pallets so they can be quickly utilized in the production process.

In addition, the parts can be containerized so they can be shipped between different areas of the plant, he said.

"VW is using them for internal transport," said Matthias Muller, CEO of Paul Muller.

Mr. Dimer said the company has an option to build another building likely housing assembly space at the Pilot Point site as well. In addition to German companies, the businesses want to service other automakers, he said.

Mr. Dimer said operations are to start June 1 and plans are to hire locally. They didn't say how much the jobs will pay.

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