US auto giant Ford said on Thursday it would invest $1 billion to build a vehicle assembly and engine plant in India as it ramps up production to exploit the country's burgeoning car market.
The new factory in Gujarat will employ around 5,000 workers and will be Ford's second in India, Michael Boneham, Ford's president in India, told reporters in a conference call. Ford's existing manufacturing facility is located in Chennai.
The Gujarat government will allocate 400 acres to Ford Motors. The facility will come up near Tata Nano's mother plant in Sanand, located 40 kms from Ahmedabad.
The construction for the plant would start by end of this year, with the completion in 2014. As for the land adjacent to the site, the state government has reserved the land for automotive suppliers. “These new state-of-the-art facilities will help us reach the goal of increasing worldwide sales by nearly 50 percent by mid-decade to about 8 million vehicles per year.
The vehicle manufacturing plant will churn out 2,40,000 units of Ford cars annually and the engine plant will make 2,70,000 units a year.
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