Spanish auto supplier Sese Industrial Services plans to build a 300,000-square-foot plant in Chattanooga to supply axle components to Volkswagen Group.
The company expects to invest the $42 million and bring 240 jobs to the area by 2022, according to a statement released by Tennessee Gov. Bill Lee.
Chattanooga economic development officials said Thursday that the investment is part of Sese Industrial’s seven-year contract with VW. Axle components assembled by Sese will be shipped to VW’s nearby plant and used in the ID4 electric compact crossover.
“The initial ID4 vehicles will be produced in Zwickau, Germany. Then, starting in 2022, production of the ID4 will begin in Chattanooga,” Michael Tolbert, a spokesperson for Volkswagen, said in a statement. “The ID4 is slated to be in U.S. showrooms in March.”
VW has continued to invest in the Chattanooga plant, which opened in 2011. In January 2019, it invested $800 million to build a second assembly line and create 1,000 jobs.
Sese Industrial Services is part of logistics conglomerate Grupo Sese, which is headquartered in Zaragoza, Spain. It runs service operation centers in 16 countries.