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Ford to Build Second Indian Manufacturing Facility

Executive Summary

The assembly plant will have an initial annual capacity of 240,000 units, while the engine plant will have capacity for 270,000 engines.

Ford today announces plans to build a second manufacturing complex in India to meet demand in the rapidly growing Indian market.

The auto maker says it will invest some $1 billion in two facilities that comprise stamping, body, paint and assembly operations, as well as machining and assembly operations for engine manufacturing.

The investment is expected to create 5,000 jobs at the combined facilities, located on a 460-acre (186-ha) site in Gujarat.

“Ford has very aggressive expansion plans in India and Asia/Pacific and Africa, and these two new plants will be important in realizing our growth strategy here in one of the most dynamic regions in the world,” Joe Hinrichs, president of Ford Asia-Pacific and Africa, says in a statement.

Ford says it selected Gujarat because of its “pro-business environment, infrastructure, access to ports in northwestern India and skilled workforce.”

Land adjacent to the site is being set aside by local government to attract and locate automotive suppliers.

The location of the facilities will allow for quick access to the north and western regions of the country, where the largest share of the country’s passenger car industry exists, Ford says.

Construction is scheduled to begin later this year, with the first vehicle and engine to come off the line in 2014.

The auto maker has not disclosed what vehicles or engine types will be built at the site.

Ford says it plans to bring more than 50 new vehicles and powertrains to the Asia/Pacific and Africa region by mid-decade.

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