Ford Laying the Foundation for its $1 Billion Factory in India

March 23, 2012
The facility will have the capacity to produce 240,000 vehicles and 270,000 engines per year for Indian customers and for export markets, according to the automaker.

Ford Motor Co. (IW 500/6) said construction is underway at the site of its future "state-of-the-art integrated manufacturing facility" in Sanand, India.

During a ceremony on Thursday, Ford's India subsidiary laid the foundation stone in what will be the paint shop of its new factory, which the automaker expects to finish in 2014.

The facility will have the capacity to produce 240,000 Ford vehicles and 270,000 engines per year for Indian customers and for export markets, the company noted.

"With this new state-of-the-art Ford Integrated Manufacturing Facility for Sanand, we are committed to significantly increasing our manufacturing output and aggressively expanding our business in India," said Michael Boneham, Ford India's president and managing director.

Situated on a 460-acre site, the integrated plant will support stamping, body assembly, paint, trim and final assembly, the automaker noted.

Ford India manufactures and distributes vehicles such as the Ford Figo at its integrated manufacturing facilities in Maraimalai Nagar, near Chennai. Including its automotive operations, engineering, accounting, IT and other support services, the automaker has 10,000 employees in India.

Ford said it has invested $2 billion in its operations in India, and the automaker expects that number to grow with its new factory in Sanand.

Ford has said that it will launch eight new vehicles in India by the middle of the decade, beginning with the new Fiesta, which it launched in July 2011.

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