Ford South Africa Will Invest More Than R3 Billion In Their Plants

Ford South Africa has announced plans to invest over R3 billion in an attempt to expand operations for the next-generation compact pick-up truck, and Puma diesel engine. This announcement adds a further R1.5 billion onto the previous investment from 2008. These additions are aimed for a larger export growth.

Ford are planning to increase their production facilities in Silverton, Pretoria as well as their engine plant in Struandalte, Port Elizabeth.

The Silverton plant will be responsible for producing the new pick-up, while Stuandale will create the engine. Increased production at these facilities are vital for rapid growth in the local market.

An increased capacity for the Silverton plant will see the overall production rise to 110,000 units, where almost three quarters of these models will be exported out of the country.

“This announcement highlights our commitment to expanding the South African automotive industry, which will enhance the country as an export base for vehicles, engines and components” said president and CEO, FMCSA Jeff Nemeth. “It ensures that Ford maintains a viable and strategic presence in Southern Africa.”

Ford’s Asian and and African growth is said to start in Africa, with these two production facilities.

“The magnitude of this project is indicative of how South Africa can benefit from having a globally competitive auto industry. In addition to the direct implications to FMCSA, this investment will have a multiplier effect with indirect job creation for local suppliers, and overall economic benefits from increased demand of locally produced content,” added Nemeth.