Hanon Systems: A Build to Suit Accelerated Six Months, Then a Second Building
Hanon Systems, a global supplier of automotive thermal and energy management solutions including EV battery thermal management, leased a 195,000 square foot build to suit at Huntington Park in Loudon, Tennessee, delivered six months ahead of the original schedule. The company then leased a second building of 195,360 square feet, delivered January 2024.
At a glance
| Client | Hanon Systems |
|---|---|
| Industry | Automotive thermal and energy management: cooling modules, coolant pumps, evaporators, transmission and EV battery thermal management |
| Location | Huntington Business Park, Loudon, Tennessee |
| Buildings | 195,000 SF build to suit plus a 195,360 SF virtually complete building, delivered January 2024 |
| Schedule | Build to suit construction accelerated by six months |
| Why Tennessee | Right to work status, no personal income tax on wages, lowest state debt per capita, strong industrial labor force, freeway proximity |
| Outcome | Repeat tenant; more than 390,000 SF across two buildings in the same park |
Who is Hanon Systems?
Hanon Systems is a global automotive supplier of thermal and energy management solutions, including cooling modules, coolant pumps, evaporators, and thermal management for transmissions and EV batteries.
Thermal management sits at the center of the industry's electric transition. Battery packs, power electronics, and cabin systems all depend on it, which puts suppliers like Hanon on aggressive program timelines set by their OEM customers.
What did Hanon Systems need?
Hanon needed manufacturing space in East Tennessee on a program-driven schedule, in a state whose labor and cost fundamentals could support long term operations.
The company's site decision favored Tennessee's fundamentals: right to work status, no personal income tax on wages, the lowest state debt per capita in the country, a strong industrial labor force, and freeway proximity at Huntington Business Park in Loudon, at the intersection of the I-75 and I-40 corridors. What the fundamentals could not supply was time. That part fell to the developer.
How did The Hollingsworth Companies help?
Hollingsworth delivered Hanon's 195,000 square foot build to suit six months ahead of the original construction schedule, then delivered a second 195,360 square foot building in January 2024.
Accelerating a build to suit by six months is not a scheduling trick. It is what becomes possible when the developer already owns the land, keeps design and construction in house, and funds work with its own cash, so no lender or committee sits between a request and an answer. When Hanon needed more space, the second building at Huntington Park was already virtually complete, and it was delivered in January 2024.
What were the results?
Hanon Systems took more than 390,000 square feet across two buildings at Huntington Business Park, and the speed of the first project is why there was a second.
The simplest measure of a development relationship is whether the tenant comes back. Hanon took its first building on an accelerated schedule and returned for a second in the same park. For a supplier navigating the EV transition, where program awards move faster than traditional construction timelines, a developer that delivers early is not a convenience. It is a competitive input.
Frequently asked questions
What did The Hollingsworth Companies build for Hanon Systems?
A 195,000 square foot build to suit at Huntington Business Park in Loudon, Tennessee, delivered six months ahead of the original schedule, followed by a second building of 195,360 square feet delivered in January 2024.
Why did Hanon Systems choose Loudon, Tennessee?
Tennessee's right to work status, absence of personal income tax on wages, lowest state debt per capita, strong industrial labor force, and Huntington Business Park's freeway proximity near the I-75 and I-40 corridors.
Can Hollingsworth accelerate a build to suit schedule?
Yes. The Hanon Systems build to suit was delivered six months ahead of the original construction schedule because Hollingsworth owns its land, keeps design and construction in house, and funds construction with its own cash.
Does Hollingsworth support EV supply chain manufacturers?
Yes. Hanon Systems' buildings at Huntington Business Park support thermal management production including EV battery thermal management, and Hollingsworth parks across the Southeast serve automotive and EV supply chain users.