Ford India to invest $72 million in its Chennai engine plant

 When the expansion programme is completed in mid-2012, the engine plant’s production capacity will increase from 2,50,000 to 3,30,000 units per year, an additional output of 80,000 diesel engines annually.

“This investment reinforces the importance of our Chennai plant and Ford’s continued expansion in India,” said Ford India President and MD Michael Boneham. “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 $1 billion. The new investment also supports the company’s plan to introduce eight new global Ford vehicles in India by 2015. Boneham added: “When the expansion is finished, a third production shift will be added at the engine assembly plant, creating more than 300  jobs.”

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, which 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, it produces five Duratec petrol engine variants and one Duratorq diesel engine variant and will produce powertrains for Ford’s all-new global Fiesta sedan, when it is launched in India this year.