BERLIN (Reuters) -- Spanish auto supplier Gestamp is planning to open a new pressing facility to supply production at Volkswagen U.S. plant 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 Tuesday to announce what it described as a "major economic development."
Gestamp was not available for comment this weekend.
The Wall Street Journal had earlier reported the plans by Gestamp.
Volkswagen last year said it would spend $900 million to build a midsize SUV at its Chattanooga plant, nearly doubling the factory's workforce, in an effort to revitalize sales in the world's second-largest auto market.