Automotive supplier Gestamp is planning to add 260 new jobs to its Chattanooga operations in a nearly $95 million expansion, much of which is to provide capacity related to electric vehicles.
Gestamp's third expansion in the past 10 years in Chattanooga will create the new jobs over the next five years at its Hickory Valley Road and Ferdinand Piech Way plants, according to Tennessee Gov. Bill Lee.
Gestamp provides structural metal stampings and welded assemblies to automotive original equipment manufacturers (OEMs), including to the Volkswagen plant in Chattanooga.
Gestamp plans to add to both its facilities to grow capacity due to new electric vehicle production. Volkswagen is investing $800 million to assemble an electric SUV by 2022 in Chattanooga.
John Cloutier, director of controlling for Gestamp U.S., said the company will service VW's new ID.4 battery-powered SUV and its modular electric drive platform, called MEB, that's coming to the Chattanooga factory.
Also, he said, the Spanish company is pursuing opportunities with other automakers in the region when it comes to EVs.
The Chattanooga Area Chamber of Commerce cited electric vehicle production by Mercedes Benz, which has an assembly plant outside Tuscaloosa, Alabama.
"There are several OEMs in Tennessee and the Southeast we have relationships with," Cloutier said.
At Gestamp's Ferdinand Piech Way plant, plans are to double the size of the facility to 300,000 square feet, he said.
At the Hickory Valley Road site, Gestamp plans to add new hot-stamping equipment and laser technology, Cloutier said.
In addition, both plants will undergo retrofitting, weld assembly and robotics updates.
Gestamp, which also has a third plant in Chattanooga off of Jersey Pike, will have 1,200 employees in the city when it makes its newest hires, he said.
While the company is beginning to fill the jobs, most of the hiring will take place in mid- to late-2021 as VW ramps up production for its new SUV, Cloutier said.
"Our main challenge is still recruiting talent," he said. "Having the right people is the key to being successful. If people are looking for a career, it has its doors open."
According to Gestamp, there is no new property tax breaks with local government related to the latest expansion.
John Petroni, Gestamp's U.S. president, said the company's investment is in state-of-the-art manufacturing technology.
"Gestamp is proud of continuing to grow our operations in Chattanooga with a third expansion that will enable us to better serve our customers in the U.S. region and further create jobs to live up to our commitment to the Tennessee workforce development," he said in a statement.
Hamilton County Mayor Jim Coppinger said Gestamp is an important supplier to the auto industry in the Southeast.
"I could not be happier to learn of yet another Gestamp expansion," he said. "The impact of their good family wage jobs ripples throughout this community as does their interaction with local education providing their next generation of workers."
Chattanooga Mayor Andy Berke said a strong workforce is vital for the future of economic investment.
"Gestamp has created an innovative work-based learning program that is preparing the next generation to support Chattanooga's new and existing business community," he said.
Steve Hiatt, the Chamber's director of existing business development, termed Gestamp "an innovative leader, paving the way for our city and county's future workforce."
Gestamp has over 100 plants worldwide.
Contact Mike Pare at mpare@timesfreepress.com. Follow him on Twitter @MikePareTFP.