Construction continues on Plastic Omnium Auto Exterior's new Chattanooga facility on Friday. Omnium has won a contract to build bumpers for Volkswagen's SUV.A key supplier to Volkswagen's Chattanooga assembly plant that's building a $70 million factory at Enterprise South industrial park has captured work to build bumpers for the automaker's new sport utility vehicle.
"We have won business for the SUV," Marc Cornet, chief executive of the Americas for Plastic Omnium Auto Exteriors, said Friday as the company officially broke ground on a 27-acre site near the VW factory.
Winning the SUV work, along with other business, will help smooth the way for Plastic Omnium to employ about 300 people at the plant in some three years, he said.
The French supplier, which already provides parts for the Chattanooga-made Passat sedan, has begun initial hiring for 184 employees expected to be on staff by mid-2015 when the new plant is to start operating off Hickory Valley Road. Most of the hiring will begin next year.
"We've started putting a strong team in place," Cornet said.
Hamilton County Mayor Jim Coppinger said the company is expected to pay about $2 million in property taxes for public schools.
Plastic Omnium has received a 10-year property tax break from the city's Industrial Development Board that is expected to provide about $2.9 million tax savings for the company, officials have said.
Tennessee House Majority Leader Gerald McCormick, R-Chattanooga, one of about 50 people taking part in the groundbreaking, said it's important to see manufacturers such as Plastic Omnium make investments.
"Chattanooga and Tennessee are heading the manufacturing renaissance," he said. "It's the future. Not the past."
Chattanooga Area Chamber of Commerce chief executive Ron Harr, who is leaving his post next month, likened his situation to New York Yankee Derek Jeter, who had a winning walk-off hit Thursday to end his career at Yankee Stadium.
"I can't think of a better way to announce the end of my tenure," quipped Harr.
Travis McDonough, Chattanooga Mayor Andy Berke's chief of staff, recalled that his father for a time worked at what was known for many years as the Volunteer Army Ammunition Plant before the city and county turned it into an industrial park and recreation area.
"I'm pleased this ground is a place where employees can support a family," he said.
Gary Haywood, VW's purchasing director, said that having suppliers close to the assembly plant helps drive down logistics costs. The close proximity also increases the supplier's ability to react more quickly to VW's needs and gives the automaker more flexibility, he said.
Charles Wood, the Chamber's vice president for economic development, said officials continue to work toward readying another 300 acres at Enterprise South for auto suppliers.
"We're meeting with the city and county to talk about next steps," he said.
In July, VW said it would invest $900 million to expand its Chattanooga factory and build a new SUV starting in late 2016. It also expects to add 2,000 more jobs to the plant that already employs about 2,400.
VW is giving up its option to buy the 300 acres as part of the incentive deal to land the project. The city, county, state and utilities provided about $274.3 million in incentives to VW for its latest expansion.
The 300 acres ultimately could add another 20 companies and 2,000 jobs, economic developers said.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.