US car maker Ford announced on Tuesday that it would invest R2.5-billion to build the new Everest sports-utility vehicle (SUV) at its Silverton assembly plant, in Pretoria.

The plant already produced the Ranger pickup for the local market, as well as 148 markets in Africa, the Middle East and Europe. It is the best-selling pickup in Europe.

Ford had invested R3.4-billion since 2008 to enable large-scale Ranger assembly and exports.

Part of the R2.5-billion investment announced this week would be directed towards assisting Ranger production, with the plant currently running close to maximum capacity to meet demand.

The South African-built Everest would be exported to sub-Saharan Africa, starting in 2017. South African customers could already receive there locally built Everest by the end of the year. Production at Silverton was set to start in the third quarter of this year.

The Silverton plant would produce eight Everest derivatives. The SUV would make use of diesel engines built at Ford’s Struandale engine plant, in Port Elizabeth, said Ford Europe, Middle East and Africa president Jim Farley at a media briefing at the Silverton plant.

Ford’s investment would create 1 200 new jobs at Ford and in its supply chain, he added.

“This capital investment shows our commitment to South Africa. When your plant gets a new vehicle, it is a really big deal. This reinforces South Africa as a strategic export base for Ford.”

Trade and Industry Minister Dr Rob Davies noted that the addition of Everest production would aid in boosting output at the Silverton facility from 74 000 units a year to 93 000 units by 2017 - a 25% increase.

He added that Ford would receive R699-million in grants from government’s Automotive Investment Scheme to build the new Everest in South Africa.

Everest capacity at the plant would be around 10 000 units a year, said Ford Motor Company sub-Saharan Africa president and CEO Jeff Nemeth. Total plant capacity was 110 000 units.

“The all-new Everest has been extremely well received since it was launched in September last year, with demand far outstripping supply.”

Nemeth would not divulge local component content on the Everest, but noted that it reached around 60% on the Ranger.

He told Engineering News Online that his company was working on luring suppliers from abroad to South Africa, while it was also of importance to develop a stronger black-owned supplier base.

The Silverton facility joined AutoAlliance Thailand in Rayong; Ford’s Chennai plant, in India (where it was sold as the Endeavor) and the JMC Xiaolan Plant in Nanchang, China, as production hubs for the Everest.

The Everest was currently imported from Thailand, using the South African-produced 3.2-litre five-cylinder Duratorq TDCi engine. It was only available in two specification levels. The start of local production would add a less expensive 2.2-litre Duratorq TDCi four-cylinder diesel engine to the range, along with a wider spread of specification levels.

Ford grew its sales 10% in South Africa last year, recording sales of more than 78 000 units, of which 34 000 units were Ranger bakkies.