Tennessee sues candle maker, auto parts firm over incentives
Tennessee officials are suing a candle maker and a manufacturer of plastic car exteriors to recoup some incentive money, saying they came up short of job creation requirements.
The Department of Economic and Community Development sued MVP Group International and Plastic Omnium Auto Exteriors LLC in Davidson County Chancery Court last week.
The other lawsuit claims South Carolina-based MVP Group International created 43 of the 100 jobs it promised between May 2014 and May 2019 to receive a $500,000 state incentive, of which the state now wants $285,000 back.
In 2014, the state said the home fragrance company would invest
$2 million in its expansion in Obion County.
One lawsuit claims
France-based Plastic Omnium created 157 of 300 jobs required between
July 2014 and July 2019 for a $1 million incentive, and must pay back $480,000.
In 2014, the state said Plastic Omnium would invest $65 million in the new facility in Chattanooga to supply the Volkswagen facility there and other major Southeast car manufacturers.
Plastic Omnium built its production plant in Chattanooga in 2015 on a 27-acre tract on Hickory Valley Road aimed at making bumpers and fenders for the Volkswagen Passat sedan. The company later won a contract to produce bumpers for the new Atlas sport utility vehicle and announced a $2.49 million expansion in 2018.
The state’s lawsuits say neither company responded to letters sent late last year demanding repayment and both also owe interest. Neither company respond to the AP’s requests for comment.