Ford Motor Company has announced a $1.05 billion (R15.8 billion) investment in its South African manufacturing operations to boost its production capacity and create new job opportunities.

The move marks the most significant investment in Ford’s 97-year history in South Africa. It also represents one of the largest-ever investments in the South African automotive industry.

“This investment will further modernize our South African operations, helping them to play an even more important role in the turnaround and growth of our global automotive operations, as well as our strategic alliance with Volkswagen,” said Dianne Craig, president of Ford’s International Markets Group during the announcement.

Ford announced the investment at a media briefing attended by South African President Cyril Ramaphosa, as well as several key government leaders, including Trade, Industry and Competition Minister Ebrahim Patel, Department of Public Enterprise Minister Pravin Gordhan, Gauteng Premier David Makhura, City of Tshwane Executive Mayor Randall Williams, and senior Ford executives.

President Ramaphosa said, “It is great to see the progress that has been made despite the massive challenges posed by the Covid-19 pandemic. This development presents a perfect opportunity to use our country’s comparative and competitive advantages to accelerate industrialization.”

The president added that the development of Special Economic Zones (SEZ) was an effective tool to enhance productive capacity. He gave examples of countries like Malaysia, China and Singapore that demonstrated the potential of SEZ when they managed to place their economies on sustainable industrial paths.

Expanded production will help create 1,200 incremental Ford jobs in South Africa, 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 60,000.The overall investment includes US$686 million (R10.3 billion) for extensive upgrades to the Silverton Assembly Plant that will increase production volume and drive significant improvements in production efficiency and vehicle quality.

Ford also will invest US$365 million (about R5.5 billion) to upgrade tooling at the company’s primary supplier factories.Ford’s investment in South Africa manufacturing operations underscores an ongoing commitment to deliver ever-better vehicles to customers in the country and around the world while providing opportunities for employees, new team members and communities.