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Ford Motor Company investment project, South Africa – update

Image of new Ford Ranger

1st April 2022

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, through its Ford South Africa subsidiary.

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
The expanded production will create 1 200 incremental jobs in South Africa, increasing the local Ford workforce to 5 500 employees, and adding an estimated 10 000 new jobs across Ford’s local supplier network, bringing the total to 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
Ford SA will produce the new-generation Ranger pickup at the Tshwane plant in 2022.

Latest Developments
FMCSA is ready to support production of the next-generation Ford Ranger, which is expected to be released in South Africa later this year, along with the new next-generation Ford Everest.

Ford Africa MD Neale Hill has said that, at full capacity, the plant will produce one new Ranger off the line every two minutes.

Moreover, Ford also aims to achieve so-called island mode – taking Silverton off the grid entirely and becoming entirely self-sufficient and carbon neutral by 2024, Hill has said that this will make the plant one of the first Ford plants globally to achieve this.

Upgrades, therefore, also include the construction of solar carports for 4 200 vehicles at the Silverton plant, which is well under way.

With Ford’s investments and enhanced production capacity, as well as the new jobs created directly in the supply chain and in the Tshwane Automotive Special Economic Zone, Ford will contribute about 2% to South Africa’s gross domestic product.  

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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