A $5.4 million expansion will add 190 new jobs to Hamilton County. (Graphic: MGNOnline)

State leaders announced Wednesday that Chattanooga Seating Systems will expand its existing local facility with a $5.4 million investment that will create 190 jobs in Hamilton County. 

"When companies like Chattanooga Seating choose to expand their existing businesses here, it speaks to our business-friendly climate and continues to establish Tennessee as a worldwide leader in the automotive sector," Gov. Bill Haslam said in a prepared statement. "We thank Chattanooga Seating for its investment and for bringing us one step closer toward our goal of making Tennessee the No. 1 location in the Southeast for high-quality jobs."

Chattanooga Seating Systems, a joint venture of Magna Seating and Hollingsworth Logistics, manufactures and supplies seats for vehicles assembled at Volkswagen Chattanooga. 

"On this expansion project, we have been fortunate to work with many talented and committed people at the state and local level who understand our business and help achieve common goals," Hollingsworth Logistics CEO Stephen Barr said. "We are pleased to be able to bring additional jobs and investment to the Chattanooga community, and we look forward to continued success in the service of our customer, Volkswagen."

Chattanooga Seating will expand its current facility in Chattanooga to make room for new equipment by utilizing an unoccupied building nearby.

"Tennessee employs more in the automotive sector than any other state in the Southeast, and it is welcomed news that Chattanooga Seating will be adding more employees to this sector and to our strong workforce," Economic and Community Development Commissioner Randy Boyd said in a prepared statement. "I want to thank Chattanooga Seating for choosing to expand in Hamilton County, and we are honored to have them as a part of team Tennessee."