Ford Could Open New Plant near Tata Nano’s Facility in Sanand

Ford India will soon set up their second manufacturing facility at Sanand close to the Tata Nano facility, according to recent reports. The company has sought around a 550 acre plot from the Gujarat government for opening their second plant, which will also include an additional park.

The company will reportedly make an announcement in a fortnight. Apart from their proposed facility, the company already has a manufacturing plant in Chennai’s Maraimalai Nagar, with an annual production capacity of around 200,000 models. An official from the government was quoted as saying that Ford India sought a 400 acre plot for their mother plant, along with a 100 to 150 acre plot for their ancillary units.

The government has already selected the GIDC estate located in Sanand, according to a source. Last year, the company had shown interest in acquiring land for their second facility in the state, and they also had talks with the state government. A team from the company also met with officials from the government, which resulted in positive negotiations.

The company is reportedly expected to have made a decision regarding this, during a board meeting some days ago. The company has also reportedly swapped notes with existing auto companies that operate in the state. Ford is however, yet to deny or confirm this development.

The company is reported to have said that as part of their commitment, they continue to practice an aggressive strategy of growth of bringing international class models to the Indian auto market. They plan to introduce 8 different models by 2015, for which they are expanding production capacities at their existing plant in Tamil Nadu, along with exploring various options for meeting increasing demand in export markets and India.

Ford, which recently produced their new sedan, Fiesta from their Chennai plant recently, are trying make India into a manufacturing centre. In a bid to increase their market share in the country, they plan to introduce 8 new cars by 2015. In the meantime, they are also increasing their Chennai plant’s production capacity by investing $72mn.

The engine production capacity at the plant after expansion is expected to increase to 330,000 a year from the present 250,000 units. The company’s executive director of sales, service and marketing, was quoted as saying that they are currently focusing their attention on expanding the engine production capacity at their Chennai plant, and announcement regarding a second facility for manufacturing will take place at a more appropriate time. Till then they will refrain from commenting on any speculation.

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