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Sunday, June 22, 2008 , 12:00 a.m.

Some manufacturers still adding jobs in city

Chattanooga’s manufacturing sector continues to see new jobs as businesses grow or eye expansions.

The biggest addition to the city’s economy will be growth by Alstom Power, which will make steam and gas turbines as it seeks to capture business related to nuclear and fossil power plant construction in the United States.

The company will add about 360 people to its 600-member work force in the city, and it will inject $280 million into its Riverfront Parkway facility in new equipment and refitting existing buildings, officials said.

BY THE NUMBERS

350,000: size of new Alstom facility in square feet

360: number of new Alstom workers

$280 million: amount of investment in new facility

The Alstom announcement made Site Selection magazine’s top North American honorable mentions list of big deals in 2007.

Trevor Hamilton, the Chattanooga Area Chamber of Commerce’s vice president for economic development, said landing the new Alstom division “reinforces our leadership as a hub” in the energy-related sector.

“This is a major milestone for one of our own,” he said. “Tennessee can compete on a global scale for manufacturing.”

Federal regulators have received license applications for at least a half dozen nuclear reactors in the United States as the industry anticipates a wave of construction. The Alstom site also will produce turbines for existing nuclear and other power plants, company officials said, but it will hold no radioactive materials.

Staff Photo by Gillian Bolsover -- James Brandon works on a panel at Alstom.

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Meanwhile, Chattanooga manufacturer Southern Champion Tray has embarked on a $10 million to $12 million expansion.

“This will be a significant increase that will allow us to continue to have a double-digit growth rate for several more years, probably the next five years,” said President and Chief Executive John Zeiser.

The expansion is centering around adding a Web-fed cutting machine to give Southern Champion more than 30 percent additional cutting capacity, Mr. Zeiser said. The plant is at 220 Compress St. off Manufacturers Road.

Southern Champion expects to add 50 workers within three years, bringing its head count in Chattanooga and Texas to about 400 people, Mr. Zeiser said. The average salary of the new jobs will be at least $40,000, according to the company.

In addition, Modern Industries automotive components plant in Lookout Valley was acquired by Lexington, Tenn.-based MIG. The deal preserved 300 jobs at the factory that was slated to close this year if a buyer wasn’t found, officials said.

Additionally, the buyer wants to grow its nonauto business.

“We’re hopeful that with a variety of uses for tube and wire we can bring in other customers, including military business,” said Andre Gist, Manufacturers Industrial Group’s chief executive.

MIG, which also makes automotive components, bills itself as the largest minority-owned company in Tennessee.

Staff writer Jason Reynolds contributed to this story.

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