Spain's Gestamp to open U.S. facility to supply Volkswagen

Monday, Jun 22, 2015

Spanish automotive supplier Gestamp is planning to open a new pressing facility to supply Volkswagen's (VOWG_p.DE) production in Chattanooga, Tennessee, a source familiar with the matter told Reuters.

The move will create 500 jobs, the source added, asking to remain anonymous.

Volkswagen declined to comment, only referring to an invitation to a press conference in Chattanooga on June 23 to announce what it described as a "major economic development".

Gestamp was not immediately available for comment.

The Wall Street Journal had earlier reported the plans by Gestamp.

Volkswagen last year said it would spend $900 million to build a mid-sized SUV at its U.S. plant in Chattanooga, Tennessee, nearly doubling the factory's workforce, in an effort to revitalize sales in the world's second-largest auto market.

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