Volkswagen Group of America Inc. announced December 18 that construction is set to begin on the paint facility for its Chattanooga, Tenn., plant. The company also announced that Walbridge has been selected as the general contractor for the $30 million facility, and will oversee construction for one of the three primary plant buildings. This $30 million is the first major portion of the company's $1 billion investment in the new plant.
"The paint facility is one of the more complex aspects of plant construction, and only a limited number of companies have the expertise necessary. After receiving strong proposals and finalizing the negotiations we determined that Walbridge brings the experience necessary to execute this critical task," said Frank Fischer, CEO-designate for Volkswagen's Chattanooga production facility.
As part of Volkswagen's commitment to a diverse workforce and supplier base, the extensive bidding process required every bidder to identify that it would subcontract with at least ten percent minority or women owned businesses and Walbridge's submission exceeded this target.
"We are committed to a local and diverse supplier and employee base and we are pleased that Walbridge shares that commitment," said Fischer.
"We are extremely pleased to have been selected by Volkswagen. Walbridge targeted this project because Volkswagen is the type of quality customer we desire," said Walbridge chairman and CEO John Rakolta Jr. "Walbridge has a long history in industrial construction, delivering added value for our customer's success. We believe we have the best team in the industry and we're ready to begin work."
Walbridge and its subcontractors will build the foundation, steel, siding and roofing for the paint shop. The structure is scheduled to be weather- tight by the end of September 2009. With operations in Chattanooga and throughout the Southeast, Walbridge is headquartered in Detroit and is one of the leading automotive facility constructors in North America. Notable projects include Toyota Motor Manufacturing North America assembly plant in San Antonio, Texas; bundled paint shop projects for General Motors in Ohio, Michigan and Oshawa, Ontario; and the Ford Rouge Complex in Dearborn, Mich.
Volkswagen Group of America will invest $1 billion in the local economy for the plant and create 2,000 direct jobs in the region. According to studies, the new Volkswagen plant is expected to generate $12 billion in income growth and an addition 9,500 jobs over the life of the project.
Volkswagen is in the early stages of procurement and will continue to expand its local and national supplier base in the coming months. The company has announced that at least ten percent of the suppliers for the production facility will be minority and women-owned businesses by start of production and that five percent of suppliers for the vehicle will be minority and women- owned by start of production, with the goal of 10 percent by 2015. Volkswagen is partnering with local, state and federal organizations to help achieve that goal.