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25 Years On, Enterprise South Industrial Park Still Driving Chattanooga’sEconomy

Enterprise South Industrial Park Chattanooga

Twenty-five years ago, Chattanooga made a bold bet on its future. What was once the site of a World War II-era Army ammunition plant was transformed into a modern industrial hub with global aspirations. That vision became Enterprise South Industrial Park, a 6,000-acre site in northeast Chattanooga designed to attract major employers, create jobs, and reshape the regional economy. Today, it’s safe to say that vision has been realized.

The sprawling site once housed the Volunteer Army Ammunition Plant, a World War II-era TNT production facility, which produced hundreds of millions of pounds of explosives before being decommissioned in the late 1970s. In the 1990s and early 2000s, Hamilton County and the City of Chattanooga began redeveloping this land into a purpose-built industrial hub. Infrastructure investments including a new interchange off I-75 and a
connector road were completed in the mid-2000s to make the property build-ready.

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At the heart of Enterprise South’s success is Volkswagen, which selected the park in 2008 as the site for its only U.S. manufacturing plant since 1988. The $1 billion investment and resulting auto assembly plant opened in 2011, signaling Chattanooga’s arrival on the global automotive stage. Initially, the plant began with approximately 2,700 employees and later grew to around 3,800 by 2020, and today it is reported to employ around 5,000 workers, manufacturing Passat, Atlas, and ID.4 SUVs. But Volkswagen is just the beginning of the story.

The park now hosts a diverse array of tenants. Amazon’s fulfillment center, which opened in 2011, brought more than 1,500 jobs to the region and helped solidify the area as a logistics powerhouse. A host of major auto suppliers, including Gestamp, Plastic Omnium, Grupo Antolin, Faurecia, Grupo Sese and Schnellecke Logistics, have also set up shop. This has helped Chattanooga build a local ecosystem that supports and strengthens the area’s manufacturing base. NOVONIX is expanding its battery materials operations in the park, where it has recently finalized the purchase of a 182-acre tract of land. The new facility is aiming for 31,500 tons of graphite per annum by the end of 2028, and is expected to generate around 450-500 full-time jobs. In total, Enterprise South has helped generate billions in private investment and spurred the creation of more than 12,000 direct and indirect jobs over the past two decades. According to economic impact studies, the park has contributed significantly to Hamilton County’s tax base and brought a wave of infrastructure improvements, from road expansions to rail lines, positioning Chattanooga as a center of advanced manufacturing and logistics in the Southeast. Now, as Enterprise South nears full capacity, Chattanooga leaders are asking a pressing question: where do we put the next project? Several sites are under consideration. But one thing remains certain. Without shovel-ready land, Chattanooga will not be able to take advantage of the next major job-creation opportunity like Volkswagen.

As Chattanooga looks to the future, the lesson from Enterprise South is clear: strategic investment pays off. What was once a shuttered government property is now a vibrant hub of global industry, driving innovation, employment, and economic growth.

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