Hamilton County's first Chinese auto supplier has cranked up production of dashboards and interior door panels for Volkswagen's new Atlas SUV, with plans to have 220 workers by summer.
"It's exciting supporting Volkswagen," said David Wang, deputy general manager for Yanfeng Automotive Interiors. "It's important as a global player to follow Volkswagen's strategy to ramp up activities in North America."
The $55 million interiors plant near Enterprise South industrial park is expected to employ about 325 people when it reaches full production. The Yanfeng plant currently employs about 100 people as VW slowly begins assembling the new SUV that's slated to hit dealerships in April.
"Welcome to the neighborhood," said Ulrich Heimann, the VW factory's chief financial officer, at the Yanfeng factory's official opening. "Locating so close is vitally important to the success of the plant."
He said Atlas production is "a major milestone" and he's hopeful it's a starting point for a deepening tie with the parts supplier that also will make center consoles and trunk trim for VW.
Hamilton County Mayor Jim Coppinger said the new plant validates what officials are trying to accomplish in the advanced manufacturing arena. He noted that Yanfeng is a global company with factories in 17 countries.
Chattanooga Mayor Andy Berke said he likes to see auto suppliers continue to expand in the region and grow the economy.
Employees for supplier companies tend to make and spend more money, and they move up the career ladder, he said.
Charles Wood, the Chattanooga Area Chamber of Commerce's vice president for economic development, said having companies such as Yanfeng close by is important to VW's supply chain.
"Having them here reduces the cost on a percar basis," he said.
Wood also said Yanfeng moved into an existing building, a Bonnyshire Drive structure that formally housed a furniture facility.
"That saves time," he said.
Steve Bushong, Yanfeng's vice president of operations, said some of the equipment installed in the plant is the best new machinery designed by the company.
He said the plant could eventually serve other auto plants in the region where that makes sense. But for now, it's just VW's Chattanooga factory.
Johnson Controls, a global multi-industrial company, and Yanfeng Automotive Trim Systems Co. Ltd., a wholly owned subsidiary of Huayu Automotive Systems Co., owned by SAIC Motor Corp., formed a global automotive interiors joint venture about two years ago.
Chattanooga and Hamilton County officials already have approved a tax break of 50 percent on plant equipment for Yanfeng for 14 years. Yanfeng still will pay about $1.2 million in school taxes over the years, officials said.
Contact Mike Pare at mpare@timesfreepress.com or 4233-757-6318.