Volkswagen Axle Supplier to Build New Tennessee Factory, Adding 240 Jobs

Mike Hockett,
Feb 18, 2021

A Spanish supplier of Volkswagen components is expanding its presence in the United States, adding a large new factory in Chattanooga, Tennessee.

The Tennessee Department of Economic and Community Development announced February 4 that Sese Industrial Services — a subsidiary of Spain-based Grupo Sesé — will build a new 300,000-square-foot facility, complementing the company’s existing Sesé Logistics U.S. LLC operations in the city.

With an investment amount of $42 million, the new plant will produce axle components for VW’s electric vehicle line. The company plans to employ 240 people at the factory.

Volkswagen’s Chattanooga assembly plant began operations in 2011 and currently has about 2,000 employees. In 2019, VW announced that it was investing $800 million into building a new assembly line at the plant to start building its all-electric I.D. Crozz SUV in 2022. The expansion would create up to 1,000 new jobs at the facility.

The Chattanooga facility addition is the latest international expansion for Grupo Sesé, which first expanded in Europe in 2008, then America, Africa, and Asia. The company’s Industrial Services unit provides assembly, value-added manufacturing, production engineering, and installation solutions.

According to its website, Grupo Sesé has more than 9,500 employees across 16 countries.

Image Credit: Volkswagen

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