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Ford Motor Company investment project, South Africa – update

9th April 2021

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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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 all-new Ford Ranger pickup truck for the domestic market and the export 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
The expanded production will help create 1 200 incremental jobs at Ford Motor Company South Africa’s (FMCSA’s) operations, increasing the local workforce to

5 500 employees and adding an estimated 10 000 new jobs across Ford’s local supplier network, bringing the total to about 60 000.

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
None stated.

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.

Edited by Creamer Media Reporter

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