BERLIN—Spanish automotive supplier Gestamp is planning to open a new pressing plant in Chattanooga, Tenn., to supply Volkswagen AG, according to people familiar with the situation.
A formal announcement is planned for next Tuesday. VW has invited journalists to a news conference to announce a “major economic development” in Chattanooga.
Gestamp will create 500 new jobs at the plant, which will be integrated into the production of VW’s new CrossBlue midsize sport-utility vehicle.
Gestamp couldn’t be reached for comment.