Ford India Pvt. Ltd, the local unit of Michigan-based Ford Motor Co. will set up a state-of-the-art automobile manufacturing unit and engine plant at Gujarat’s Sanand.

Ford officials and Gujarat government signed MoU in this regard in Gandhinagar today in presence of Gujarat Chief Minister Shri Narendra Modi and minister of state for Industry Shri Saurabh Patel.

According to this, Ford will invest Rs. 4,000 crore (one billion US dolalr) for stamping, body, paint, assembly work, and annually 2,40,000 automobile manufacturing unit. The company will initially set up am engine plant which will manufacture 2,70,000 engine per year. According to company’s release a new unit will generate employment for 5,000 people. The new unit will be set up over 460 acres of land. The government will reserve nearby land for automotive suppliers of both plants.

Starting with ‘Namaste Gujarat’ in his speech, Ford Asia Pacific and Africa’s President Shri Jo Hinrix said “we are pleased to announce our new facility in Gujarat.”

“Ford has chosen Gujarat because the state has business friendly enviornment, good infrastructure, port connectivity with north western India and skilled human resources,” he further said.

“We would be able to reach important areas of north and western India through this new manufacturing unit,” he added.

The company intends to start construction of both its plant this year only and first vehicle and first engine will roll out in 2014 as per the plans. By middle of this decade, Ford is going to introduce eight new vehicles in India. Ford has automobile unit in Tamil Nadu presently. The company is also expanding its existing engine plant in Tamil Nadu.

In a simple function held at Gandhinagar, Gujarat government’s industry secretary Shri M.Sahu and Ford India’s President and Managing Director Michael Bonhem signed an MoU in presence of Gujarat Chief Minister Shri Narendra Modi and Mr. Jo Hinrix.

Mr. Hinrix said, “Ford is investing globally for future. These new stat-of-the-art facilities will make it possible to sell about 8 million vehicles by middle of this decade contributing 50% growth. Ford expects 60-70% growth in next 10 years from Asia Pacific and Africa regions.”

“We will continuously try to become good corporate citizens,” he added.

Gujarat Chief Minister Shri Narendra Modi said that his government would partner with Ford for fast implementation of the project.

Modi further said, the proposed plant will generate direct employment for 5,000 youths and indirect employment for 20,000 persons. Vendors associated with the plant will provide employment to another 10,000 persons. About 20-25% production will be exported.

Ford’s today’s move brings its total investment figure in India at two billion US dollar. The company has sold 1,00,000 Ford Figo cars in India in 15 months.