Volkswagen of America this week broke ground on a $40-million, 400,000-square-foot parts distribution centre in Roane County, Tennessee.

The facility will take up 55 acres in the City of Kingston, employ about 50, and make an economic impact worth millions to the Knoxville-Oak Ridge Innovation Valley. The facility will start out as a redistribution centre to service warehouses and later expand to include part distribution, serving more than 100 dealers in surrounding regions, and throughout the U.S., Canada and Mexico.

Photo: Volkswagen

The centre is expected to start distributing domestic parts for the Chattanooga-made Passat and other vehicles by early next year.

Innovation Valley Inc. is a regional economic development initiative centred on a 40-km Technology Corridor, and guided by a private, independent board of directors.