American automaker Ford has announced plans to revive operations at its only plant in India, in Chennai.
The auto giant said on Friday it will resume manufacturing at the plant with an initial investment of ₹3,250 crore, with production expected in 2029.
“With an initial expected investment of ₹3,250 crore, the project is expected to create more than 600 jobs, plus indirect jobs across the industry,” it added.
As part of a Memorandum of Understanding (MoU) signed with the government of Tamil Nadu, the automaker, which exited the Indian market in 2021, said its new “strategic direction leverages India’s manufacturing expertise as part of the Ford+ plan”.
“We are pleased to advance our plans and confirm the Chennai plant’s vital role in Ford’s manufacturing network,” Ford Motor Company president, International Markets Group Jeff Marentic said.
Also Read: Ford to make re-entry in India, to restart Chennai plant
Ford said the new-generation engine lineup planned for production in Chennai will feature the latest technology, the details of which would be shared closer to the start of production.
Following site preparation and investment in the project that will begin later this year, the Chennai plant will have planned capacity of 2.35 lakh engines annually, the company said in a statement.
“This decision reinforces our commitment to leveraging India’s manufacturing prowess for future products,” Marentic said.
In September 2021, Ford Motor Co had announced stoppage of manufacturing vehicles in India after nearly three decades of struggling to make a mark in the country. It had said it would stop vehicle production at its two plants in the country, and will sell only imported vehicles going ahead as part of a restructuring exercise.
While the company sold its vehicle manufacturing plant at Sanand in Gujarat to Tata Motors, it could not wind down its vehicle and engine manufacturing in Chennai by the targeted timeline of second quarter of 2022.
It currently employs approximately 12,000 people in its Global Business Operations in Tamil Nadu.
Last year, it submitted a Letter of Intent (LOI) to the government of Tamil Nadu, confirming its intention to utilise the Chennai plant for manufacturing for exports.
On Ford’s latest decision to commence manufacturing in Chennai, Tamil Nadu Industries Minister, T R B Rajaa, said the company’s operations will further energise the resurgent automotive sector of the state.
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