A decision to install a larger waterline at the Volkswagen plant site will help enable the automaker to expand its factory and supplier park, a water utility executive said.
"It's trying to think ahead," said Don Stafford, general manager of the Eastside Utility District, which is providing water to the $1 billion assembly plant under construction. "Any plant they want to put up ... they'll have their own big line."
Putting in a bigger, dedicated 24-inch water line, approved by the city's Industrial Development Board last week, is one indicator that plant expansion already is on the minds of local officials and VW executives.
VW officials have said they're building their current 2 million-square-foot facility on a footprint that enables them to add more space and about double production capacity.
Guenther Scherelis, VW's general manager of communication in Chattanooga, said installing a larger waterline doesn't mean there's a decision to expand, but officials want to keep the possibility on the table.
"It's just to keep the options open for the plant and the supplier park," he said.
The Industrial Development Board, which is overseeing much of the VW plant infrastructure work, approved the plan to permit Eastside Utility to install the 24-inch line instead of a 6-inch line to serve VW's adjacent supplier park.
The work to install the larger line will cost an extra $251,826, lifting the project price to $459,009, according to the development board.
Lee Norris, the city's deputy public works administrator, said the city and Hamilton County will split the cost. The move suggests the German automaker is looking ahead.
"It tells me they're not through," Mr. Norris said.
Mr. Stafford said the plant now is served by a 30-inch line that Eastside Utility also uses to provide water to customers in Ooltewah, Collegedale and East Brainerd.
Initial plans called for the installation of the 6-inch line to serve VW's adjacent supplier park. But, Mr. Stafford said, by installing the 24-inch line and connecting it directly to Eastside's filter plant, VW can tie into it to serve any future expansion.
"If they went to six (inch line), it would have done good for the supplier park only," he said. "But doing this right here, it does good for anything VW builds in there for the whole complex."
Also, because the 24-inch line will be tied directly to the filter plant and dedicated to VW, there will be steadier pressure than in the 30-inch line, Mr. Stafford said.
"They'll have their own private line," he said.
J.Ed. Marston, the Chattanooga Area Chamber of Commerce's vice president of marketing, called the move active planning on the part of VW and the city.
"We think this is very positive sign," he said. "There are no guarantees. It leaves the options open."
In addition to the idea of doubling plant capacity to produce 300,000 cars annually, there has been talk about a potential engine plant.
Analysts and others have raised the prospect that VW will need an engine or transmission plant in North America to help serve the Chattanooga auto assembly factory that is expected to start production early next year.
A VW official said a drivetrain plant at this time is "speculation" and the company is focusing on the startup of the local plant, where it will build an all-new sedan.
VW WATER
Volkswagen is expected to use about 1 million gallons of water a day at its Chattanooga production plant, according to Don Stafford of Eastside Utility District.
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