Date:14/05/2008 URL: http://www.thehindu.com/2008/05/14/stories/2008051456231600.htm

Business

Ford to expand engine assembly plant capacity

S. Varadharajan

To cater to the needs of Asia Pacific and African regions

Flexibility to produce diesel and petrol engines
Indigenous content to go up to 85 per cent

— Photo: Bijoy Ghosh

ENGINE OF GROWTH: Michael Boneham, Managing Director and President, Ford India, with a diesel engine assembled at its new plant at Maraimalai Nagar near Chennai, on Tuesday.

CHENNAI: Ford India has launched production of diesel engines at its new engine assembly plant at Maraimalai Nagar near Chennai for use in the mid-size Ford Fiesta and Ford Fusion product lines. The plant officially went on stream in late April. Addressing visiting presspersons, Michael Boneham, the newly appointed Managing Director and President of the company, said the world-class facility will position Ford India as a strategic manufacturing hub to cater to Asia Pacific and African regions.

Mr. Boneham said the facility would initially meet the requirements of the domestic market. The company had invested $26 million and the present capacity is 60,000 engines annually. In the second phase of expansion, this will be seamlessly integrated into a highly-flexible engine assembly facility and the capacity will be scaled up to 2.50 lakh units by 2010.

The present facility has the flexibility to produce diesel and petrol engines. Though diesel engines are turned out at present, the assembly line can be modified within four hours to turnout petrol engines, according to Tom. S. Chackalackal, Vice-President (Manufacturing).

The assembly line, which includes a cylinder block machining line, is built to Ford’s global manufacturing standards and quality, with a completely climate controlled enclosure that ensures a dust-free environment. In-station process verifications, including compression leak testing and 100 per cent hot test technology, ensure that each engine exceeds specification. The plant has robotic washing and electronic controls to verify the assembly process.

The engine assembly plant has created an additional 200 technical and engineering positions, increasing overall employment at Ford India to 2,300.

The company has also added 25 new local suppliers to its supply network to support the engine assembly operations, which help to contribute nearly 50 per cent indigenous content to the diesel engines. The localisation levels will be increased to 85 per cent by 2010, according to Mr. Boneham.

It may be recalled that Ford Motor Company had announced in January this year to invest $500 million to further expand its India operations.