Ford will invest US $72 million to expand its production capacity in Chennai to further support its sales and export growth plans in India. Company expecting its expansion programme will probably completed in mid-2012, then the engine plant’s production capacity will increase from 2.5 lakh to 3.3 lakh units per year, an additional output of 80000 diesel engines annually.
Michael Boneham, president and managing director of Ford India said, “this investment reinforces the importance of our Chennai plant and Ford’s continued expansion in India,”. “This expansion will allow us to provide more technologically advanced and fuel-efficient engines to our customers in India and in markets around the world where we export Chennai-built vehicles.”
The expansion of diesel engine production capacity will bring Ford’s total investment in India to more than US$ 1 billion. The new investment is part of Ford India’s transformation into a major global export and manufacturing hub – 1.6 TiVCT, 1.4 HC and Duratorq engines will be exported from the country.
The expansion announcement is the latest milestone in a busy and productive year at the Maraimalai Nagar engine plant. In March, plant managers and employees celebrated the 100,000th engine produced at the factory – this significant milestone was achieved just 14 months after the engine plant opened for operations in January 2010.
The plant is the first Ford facility to feature single flexible production line manufacturing petrol and diesel engines. It is also the first Ford plant to run a flexible crank shaft production line producing crank shafts for petrol and diesel engines.
Today, the plant produces five Duratec petrol engine variants and one Duratorq diesel engine variant for Ford vehicles. It is also gearing up to produce powertrains for Ford’s all-new global Fiesta sedan, when it is launched in India later this year.
Since June 2010, more than 4,000 India-built 1.4L and 1.6L petrol engines have been exported to Thailand every month. Diesel engines have also been exported to South Africa since 2008 and Ford plans to export India-built petrol and diesel powertrains to more markets in the near future.
