Ford Motor Company investment project, South Africa – update

Name of the Project
Ford Motor Company investment project.
Location
Pretoria, in Gauteng, South Africa.
Project Owner/s
Ford Motor Company.
Project Description
Ford Motor Company is undertaking the biggest investment in its 97-year history in South Africa. The project is also one of the biggest-ever investments in the South African automotive industry.
The investment will increase the capacity at the Silverton plant from 168 000 to 200 000 vehicles a year, supporting the production of the new Ford Ranger pickup truck for the domestic market and exports to more than 100 global markets. The plant will also manufacture Volkswagen (VW) pickup trucks as part of the Ford-VW strategic alliance.
The project will entail extensive upgrades to the Silverton plant, which will increase production volume and drive significant improvements in production efficiency and vehicle quality. These include the construction of a new body shop with the latest robotic technology, and a new high-tech stamping plant, both of which will be located on site for the first time.
The plant will use a high-speed line to produce all the major sheet metal components for the new Ranger. It includes a fully automated storage and retrieval system for stamping dies, which will be housed in the roof of the facility, thus eliminating related labour-intensive processes. In addition, a modern blue-light scanner system, which scans surfaces for imperfections, will ensure that the highest-quality final product leaves the stamping plant.
Extensive upgrades will also be undertaken on the box line, paint shop and final assembly to improve vehicle flow within the plant, along with the expansion of the container and vehicle yards.
Ford will also build new-vehicle-modification and training centres – the latter will ensure that all Ford employees are equipped with the knowledge and skills required to maximise the efficiencies of the enhanced Silverton facilities.
The new investment programme builds on the recently announced Project Blue Oval renewable-energy project, which aligns with the company’s global target of using 100% locally sourced renewable energy for all its manufacturing plants by 2035, and achieving carbon neutrality by 2050.
The first phase of Project Blue Oval is under way with the construction of solar carports for 4 200 vehicles at the Silverton plant.
Potential Job Creation
Ford Motor Company South Africa has created about 1 200 incremental jobs by reintroducing a third shift to its operations at the Silverton assembly plant.
The implementation of a third shift will increase Ford’s workforce from 4 200 employees to about 5 000 employees, with an additional 440 jobs created at the plant’s on-site service provider.
Capital Expenditure
$1.05-billion (R15.8-billion – 2021).
The investment includes $686-million (R10.3-billion) for extensive upgrades to the Silverton assembly plant, which will increase production volume and drive significant improvements in production efficiency and vehicle quality. Ford will also invest $365-million (R5.5-billion) to upgrade tooling at the company’s major supplier factories.
Planned Start/End Date
The project will support expanded production of the all-new Ranger pickup truck starting in 2022.
Latest Developments
In the lead-up to next year’s launch of the next-generation Ford Ranger, Ford South Africa hosted a high-level delegation on November 20 for an oversight visit at its Silverton assembly plant and the adjacent Tshwane Automotive Special Economic Zone (TASEZ).
The visit followed the announcement in February 2021 of Ford Motor Company’s $1.05-billion investment in its Silverton plant.
“We truly appreciate and value our partnership with national, provincial and local government which helped make this investment possible. It is impacting [on] communities with 1 200 incremental new jobs at Ford, and an additional 10 000 jobs in the total value chain. So, it is changing lives for South Africans, not just in the years ahead, but for decades to come.
“It is amazing to see how much has been achieved within the Ford Silverton assembly plant and the TASEZ in such a short period,” Ford IMG operations director Andrea Cavallaro noted during the visit.
“Ockert Berry and his team at Ford South Africa have totally transformed the Silverton plant, and it’s unrecognisable from just six months ago. Modernising this plant is a crucial step in ensuring that it is comparable with the best Ford plants in the world, and will deliver the highest levels of quality, and at the required volumes to meet the significant demand from around the world.
“I would also like to commend Simphiwe Hamilton and his TASEZ team, who have pulled out all the stops to deliver on the targets, despite the immense challenges posed by Covid-19,” he added.
Trade, Industry and Competition Deputy Minister Fikile Majola noted that Ford’s decision to invest in South Africa was “very important” to government, as it supported thousands of jobs in the local communities.
“Our partnership with Ford in the TASEZ is one of our great success stories, as it serves as an example of what government working with the private sector can do.
“It is now up to government to meet Ford’s deadline when they reach full production to be able to move the vehicles efficiently to the ports via the rail corridors so that we can export these vehicles around the world,” he elaborated.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
FMCSA GM communications Minesh Bhagaloo, tel +27 12 842 2691 or email mbhagalo@ford.com.
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