Ford's decision to invest is another testimony for TN's industrial prowess: CM Stalin

Chennai, Oct 31 (PTI) Chief Minister M K Stalin on Friday said that US automaker Ford Motor Company's decision to choose Tamil Nadu for production of new generation engines is another testimony for the state's industrial prowess and its indispensable position in the global manufacturing supply chain.

The major investment by Ford would build on Tamil Nadu's robust automobile ancillary ecosystem, he said.

Earlier in the day, top officials of Ford Motor Company exchanged documents with the Tamil Nadu government in the presence of CM Stalin at the Secretariat, committing investments of Rs 3,250 crore to produce next generation engines at the facility in Maraimalai Nagar near Chennai.

Deputy Chief Minister Udhayanidhi Stalin, Industries Minister TRB Rajaa, Chief Secretary N Muruganandham and senior government officials were present on the occasion.

"Ford returns to Tamil Nadu with full throttle. A powerful comeback that renews a long and trusted partnership as Ford invests Rs 3,250 crore in Tamil Nadu to set up a Next Gen Engine manufacturing unit at its plant at Maraimalai Nagar," Stalin said.

This major investment would create 600 direct jobs and build on "Tamil Nadu's robust automobile ancillary ecosystem," he said.

"Ford's decision to choose India's automobile capital for production of such futuristic engines is another testimony for Tamil Nadu's industrial prowess and its indispensable position in the global manufacturing supply chain. Welcome Back," the chief minister said in a social media post.

In 2021, Ford announced stoppage of manufacturing vehicles in India and exited the market. Last year, it had submitted a Letter of Intent (LoI) to the Government of Tamil Nadu confirming its intention to utilise the Chennai plant for manufacturing.

In a statement on Friday, Ford said it would invest Rs 3,250 crore at the Chennai plant to produce new generation engines. Following site preparation at Maraimalai Nagar located about 45 kms south of Chennai, the investment in the project would begin later this year.

Ford Motor Company, International Markets Group, President, Jeff Marentic said, "We are pleased to advance our plans and confirm the Chennai plant's vital role in Ford's manufacturing network. This decision reinforces our commitment to leveraging India's manufacturing prowess for future products," he said.

The factory would have a planned capacity of 2.35 lakh engines annually with production expected to commence in 2029, the statement said.

The engine planned for production in Chennai will feature all-new technology. Specific details about the engine type and export markets will be shared closer to the start of production, it added.

In September 2021, after nearly three decades of serving Indian market, Ford Motor announced that it would stop vehicle production at its two plants (Chennai and Sanand in Gujarat) in the country and would sell only imported vehicles as part of a restructuring exercise. PTI VIJ VIJ KH