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

[June 20, 2015]  BERLIN (Reuters) - 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.

(Reporting by Andreas Cremer; Additional reporting by Julien Toyer in Madrid, editing by Louise Heavens; Writing by Christoph Steitz; Editing by Georgina Prodhan)

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