Ford's $1 Billion Sanand Plant


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Ford lays Sanand plant foundation.

Ford India has laid the foundation stone for its new state-of-the-art manufacturing facility, to be set up at a 460-acre plant site in Sanand. The plant will commence operations in 2014, with a production capacity of 2,40,000 units and 2,70,000 engines per year for both domestic and export markets.

The event saw Michael Boneham, president & MD, Ford India, joined by Maheswar Sahu, Industry Secretary, Government of Gujarat and Felix Guillen, Ford's executive director of manufacturing for Asia Pacific & Africa, recognize the critical role of the company’s new facility.

“We lay the foundation for Ford’s continued expansion in India, and plant the seed for a brighter future for our employees, suppliers, dealers and customers, and for the people of Gujarat and India," said Boneham.

The new assembly plant will be fully integrated to support stamping, body assembly, paint, trim and final assembly. The paint shop will utilize Ford’s environmentally friendly rotational dip technology and 3-Wet technology paint processes that will further improve paint quality and durability. Ford also claims it will reduce the levels of the Volatile Organic Compounds, CO2 emissions and waste.

With the new one-billion-dollar plant, Ford’s total investment in India to date is approximately two billion dollars, an amount that is expected to grow with the completion of the Sanand facility in 2014.

As part of its continuing aggressive strategy to compete in the India automobile market, Ford has announced that it will bring eight new vehicles to India by mid-decade, the all-new Fiesta being the first step.

Source:
Ford lays Sanand plant foundation - News - Autocar India
 
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As part of Ford’s strategy to launch global platforms in India, its first model to roll off the production lines at its upcoming plant at Sanand in Gujarat will be the next-generation Figo (Codename: B562). The B562 will beef up competition in the B-plus segment and is expected to roll out in 2014. It is believed to have been designed and engineered at Ford’s design centre in Brazil and will be launched first in Brazil around end-2013.

The B562 model will be powered by the same EcoBoost powertrain technology that will power Ford’s all-new sub-4-metre EcoSport SUV (Codename: B515) that will be introduced in India in early 2013. The EcoSport will be Ford’s first vehicle with its smallest ever, high-tech three-cylinder 1.0-litre petrol engine that will deliver improved fuel economy without compromising on performance. The image below shows Joe Hinrichs, president, Ford Asia-Pacific and Africa, introducing the 1.0-litre, EcoBoost engine in the EcoSport to audiences at the Auto Expo in New Delhi in January this year. After the all-new Fiesta, which was launched in July 2011, the EcoSport is the latest ‘One Ford’ global product and the second of eight products Ford plans to bring to India by mid-decade.
 
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Dürr builds the largest paint shop ever in India for Ford’s Sanand plant


German mechanical and plant engineering group Dürr is building the largest ever paint shop in India for Ford India’s new car plant facility in Sanand, Gujarat. The paint shop – with proven Dürr technology – will start operations in 2014.

Along with the application, plant and automation technology, the scope of delivery also includes the conveyor technology and exhaust air purification systems. The well-proven RoDip M rotational dip coating system (pictured) is used in the pretreatment and electro dipping. The rotational movement of the car body in the RoDip tank guarantees uniform cleaning and coating. RoDip technology thus provides the best possible corrosion protection and also a space and material saving plant layout, since inclined sections at the entrance and exit of the dip tank are not needed.

The Ecopure TAR exhaust air purification system is used with the straight-through ovens for cathodic dip-coating and topcoat. This purifies the process exhaust air through incineration. The residual heat from the purified exhaust air is fed back into the production process by downstream heat recovery systems. This allows valuable resources to be conserved.

The application of exterior base coat and clear coat takes place fully automatically with 32 Ecopaint Robot RP L033 painting robots in two painting lines. All robots are equipped with the proven EcoBell2 high-speed rotating atomizer. The cleaning system Ecopaint Clean provides body cleaning prior to painting. Furthermore, eight Ecopaint RS 16 robots are used for the application of underbody protection and rocker panels.

Control and visualization of production is provided by Dürr's EcoEMOS process control system. Production costs can be effectively reduced and production quality can be significantly improved through easy access to process data. The conveyor system is not limited to the usual skid conveyors, but also includes a paint selection buffer and painted body storage for car bodies.

Dürr says the combination of its proven and innovative technologies makes the new paint shop in Sanand a benchmark for the Indian market. The plant will not only make a more environmentally friendly production reducing Volatile Organic Compounds, CO2 emissions and waste with reduced material and energy inputs possible, but will also provide lower costs per unit and impressive paint quality.

Ford will initially produce more than 240,000 passenger cars per year at the Sanand plant once it’s operational in 2014. The plant was ordered at the end of 2011.
 
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FORD BETS BIG ON INDIA; AIMS AT 500 TOUCH POINTS BY 2015

By the middle of this decade, American car maker Ford will have launched all of its 8 new products that it has been planning to launch in the Indian car market. Ford’s car model onslaught, which began last year with the all new Fiesta sedan, will move to its next phase in early 2013, when the car maker will launch the EcoSport Compact Crossover, a car on which it is pinning plenty of hopes.

Now, with all these car launches, it is clear that Ford is aiming at big volumes in India. To support this effort, Ford would need a much better reach in terms of dealerships and after sales service centers across India. For precisely this, Ford wants to take the number of touch points to 500 and this expansion effort will happen by 2015.

Ford bets big on India; Aims at 500 touch points by 2015 | IndianCarsBikes.in
 
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Ford's Sanand plant in Gujarat to be commissioned next year: Official

Ford India's Sanand plant in Gujarat would be commissioned by 2014, a top official said today.

"Around 4,000 people are working on ground at Sanand, the project is very much on track and it will be commissioned by 2014," said President and Managing Director of Ford India Joginder Singh during an interaction with media here today.

"With the Sanand facility, our net investment in India would be around $ 2 billion, of which around $ 1 billion would be for Gujarat."

Ford India's upcoming integrated manufacturing facility in Sanand includes stamping, body, paint and assembly operations for vehicle and engine manufacturing.

Ford India is one of the partner companies of the 6th edition of Vibrant Gujarat Summit (VGS) and Singh would be speaking as an expert panelist at a couple of conferences.

Singh said company plans to introduce some eight models in the country by mid-decade, and expects that by 2020 India would be the third largest market for Ford after China and US.

He also spoke about expanding dealer network. By the end of this year, the company plans to increase the number of dealers from 125 to 250, and to 500 by mid-decade.

"Expansion of dealer network will be focused on rural areas. We strongly believe that rather than focusing only in metro, we will go in tier-2 and 3 cities where our customers are. Instead of waiting for customers to come to us, we will go to our customers."

Expressing caution about increase in tax on diesel vehicles, he said, "The government should come up with policies that would promote growth. Any extra tax on diesel vehicles would be regressive."

Ford's Sanand plant in Gujarat to be commissioned next year: Official - The Economic Times
 

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Tata Motors gets Gujarat govt nod to take over Ford's Sanand plant

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Tata Motors has got the permission to take over US auto major Ford Motor Company's passenger car manufacturing plant in Sanand, Gujarat. Earlier this week, the Gujarat cabinet cleared proposal to take the deal forward, which was submitted by the two carmakers.

Ford Motor Company announced its decision to leave India late last year due to various factors like wrong-reading of the market/product design/positioning and huge investment in a second plant when the first plant capacity itself was not fully utilised, according to experts.

The company’s passenger vehicle manufacturing plant in Sanand stopped operations by April this year. According to sources quoted by ToI, the cabinet has issued a no-objection certificate to the companies' proposal to take the deal forward, which was submitted by the two carmakers.

Ford Motor Company announced its decision to leave India late last year due to various factors like wrong-reading of the market/product design/positioning and huge investment in a second plant when the first plant capacity itself was not fully utilised, according to experts.

The company’s passenger vehicle manufacturing plant in Sanand stopped operations by April this year. According to sources quoted by ToI, the cabinet has issued a no-objection certificate to the companies' proposal. An MoU will be signed between Tata Motors and Ford on Monday in front of CM Bhupendra Patel, sources added.

''The Gujarat cabinet's approval is only a green signal... The companies are still in talks to work out the nitty-gritties with regard to the deal size, labour issues, financials, and duties and benefits involved in the takeover. Once the two firms agree, a definitive agreement may be inked between the two automakers," an official said.

A formal ceremony for the MoU signing is being planned for May 30, wherein representatives of both companies will be present. The state government has agreed to pass on all benefits offered to Ford to Tata Motors for the remaining period of the concession agreement, according to an official.

The Economic Times
 

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Tata Motors signs MoU with Gujarat Government for Ford's Sanand Plant acquisition

Press Release:
Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors Ltd, and Ford India Private Limited (FIPL), have today signed a Memorandum of Understanding (MOU) with the Government of Gujarat (GoG) for the potential acquisition of FIPL’s Sanand vehicle manufacturing facility including (i) Land & Buildings (ii) Vehicle Manufacturing Plant, Machinery and Equipment and (iii) transfer of all eligible employees of FIPL Sanand’s vehicle manufacturing operations, subject to the signing of definitive agreements and receipt of relevant approvals. FIPL will operate its Powertrain manufacturing facilities by leasing back the land and buildings of the Powertrain unit from TPEML.

Tata Motor’s Passenger and Electric Vehicles have delivered market beating growth with its “New Forever” range of products over the last two years. This growth momentum is expected to continue with the strong pipeline of future ready products and our proactive investments in Electric Vehicles. With increasing capacity utilisations, sustaining this growth will require augmenting TML’s PV/EV manufacturing capacity in the coming years.

The Ford India vehicle manufacturing site at Sanand is a state-of-the-art site. TPEML would invest into new machinery and equipment which is necessary to commission and make the unit ready to produce its vehicles. With the proposed investments, it would establish an installed capacity of 300,000 units per annum, which would be scalable to more than 400,000 units. We anticipate this to take a few months. This MOU for a potential acquisition of this unit, is a win-win for all stakeholders and helps Tata Motors accelerate the enhancement of its PV/EV manufacturing capacity. This unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Ltd at Sanand, which should help in a smooth transition.

Announcing the signing of this MoU, Dr. Rajiv Kumar Gupta, IAS, Additional Chief Secretary, Government of Gujarat, said, “This MoU is intended to catalyse a win-win for all the stakeholders and ensure a smooth transition. This effort reinforces Gujarat’s image as a progressive, investment-friendly state and its resolve to further strengthen the state as a leading automotive hub in the country. It will boost the confidence of the international investment community, reinforce Gujarat’s position as the top investment destination in the country and further strengthen the Atmanirbhar vision of our Hon’ble Prime Minister.”

Speaking on the occasion, Mr. Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, said, “Tata Motors has a strong presence in Gujarat for more than a decade with its own manufacturing facility at Sanand. This MoU further reinforces our commitment to the state by creating more employment and business opportunities. Rising customer preference for passenger and electric vehicles made by Tata Motors has led to a multi-fold growth for the company over the past few years. This potential transaction will support expansion of capacity, thus securing future growth and opportunity to further strengthen our position in the passenger and electric vehicles space.”

This MOU will be followed by signing of the definitive transaction agreements between TPEML and FIPL over the next few weeks.
 

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Tata Motors’ buys Ford India’s manufacturing plant for Rs 725 crore

Tata Passenger Electric Mobility (TPEML), a subsidiary of Tata Motors and Ford India Tata Motors have signed a Unit Transfer Agreement (UTA) for the acquisition of Ford India’s (FIPL) manufacturing plant situated at Sanand, Gujarat, which inter-alia includes entire land & buildings, vehicle manufacturing plant along with machinery and equipment situated therein; and transfer of all eligible employees of FIPL’s vehicle manufacturing operations at Sanand, for a total consideration, exclusive of taxes of Rs 725.7 crore.
FIPL will continue to operate its powertrain manufacturing facility by leasing back the land and buildings of the powertrain manufacturing plant from TPEML on mutually agreed terms. TPEML has agreed to offer employment to the eligible employees of FIPL’s powertrain manufacturing plant in the event of FIPL’s cessation of such operations.

The closure of the transaction will be subject to the receipt of relevant approvals from the government authorities and fulfilment of customary condition precedents. The government of Gujarat, TPEML and FIPL have already executed a tripartite MoU on May 30, 2022 to support all relevant approvals for the above transaction.

Tata Motors Passenger Vehicles business has delivered growth over last few years and has strong plans to sustain this momentum, with its robust pipeline of future ready ‘New Forever’ products and proactive investments in electric vehicles. With our manufacturing capacity nearing saturation, this acquisition is timely and a win-win for all stakeholders. It will unlock a state-of-the-art manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum.

TPEML would make the necessary investments to reconfigure the plant to adapt to Tata Motors’ existing and future vehicle platforms. The unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Limited at Sanand, which should help in a smooth transition.

Shailesh Chandra, MD, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility said, “The agreement with FIPL signed today is beneficial to all stakeholders and reflects Tata Motors strong aspiration to further strengthen its market position in the Passenger Vehicles segment and to continue to build on its leadership position in the Electric Vehicle segment. It will accelerate the growth and development of the Indian auto industry by taking a progressive step forward towards building a future ready Atmanirbhar Bharat.

Steve Armstrong, Transformation Office, Ford Motor Company said, “Today’s announcement marks an important step forward in Ford’s ongoing business restructuring in India, which is part of our Ford+ plan for strategic transformation. With the transfer of employment for eligible vehicle manufacturing employees included in the agreement, this milestone also highlights our best effort in caring for those impacted by the restructuring. The shared values of trust, ethics and putting people first were the driving force behind our agreement with Tata Motors. We are confident that both the state-of-the-art manufacturing set-up as well as the world-class talent will continue to prosper under the new leadership and help Tata Motors to scale new heights.”

Both TPEML and FIPL will work together over the next few months to satisfy all the condition precedents and obtain the required regulatory approvals for the closure of the transaction. Tata Passenger Electric Mobility (TPEML), a subsidiary of Tata Motors, and Ford India (FIPL), have today signed a Unit Transfer Agreement (UTA) for the acquisition of FIPL’s manufacturing plant situated at Sanand, Gujarat, which inter-alia includes: (i) entire land & buildings; (ii) Vehicle Manufacturing Plant along with machinery and equipment situated therein; and (iii) transfer of all eligible employees of FIPL’s vehicle manufacturing operations at Sanand, for a total consideration, exclusive of taxes, of Rs 725.7 Cr (Seven Hundred Twenty Five Crores and Seventy Lakhs).

FIPL will continue to operate its powertrain manufacturing facility by leasing back the land and buildings of the powertrain manufacturing plant from TPEML on mutually agreed terms. TPEML has agreed to offer employment to the eligible employees of FIPL’s Powertrain Manufacturing Plant in the event of FIPL’s cessation of such operations.

The closure of the transaction will be subject to the receipt of relevant approvals from the government authorities and fulfilment of customary condition precedents. The government of Gujarat, TPEML and FIPL have already executed a tripartite MoU on 30th May 2022 to support all relevant approvals for the above transaction.

Tata Motors Passenger Vehicles business has delivered market beating growth over the last few years and has strong plans to sustain this momentum, with its robust pipeline of future ready “New Forever” products and proactive investments in electric vehicles. With our manufacturing capacity nearing saturation, this acquisition is timely and a win-win for all stakeholders. It will unlock a state-of-the-art manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum.

TPEML would make the necessary investments to reconfigure the plant to adapt to Tata Motors’ existing and future vehicle platforms. The unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Limited at Sanand, which should help in a smooth transition.

Announcing this, Mr. Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, said, “The agreement with FIPL signed today is beneficial to all stakeholders and reflects Tata Motors strong aspiration to further strengthen its market position in the Passenger Vehicles segment and to continue to build on its leadership position in the Electric Vehicle segment. It will accelerate the growth and development of the Indian auto industry by taking a progressive step forward towards building a future ready Atmanirbhar Bharat”.

“Today’s announcement marks an important step forward in Ford’s ongoing business restructuring in India, which is part of our Ford+ plan for strategic transformation. With the transfer of employment for eligible vehicle manufacturing employees included in the agreement, this milestone also highlights our best effort in caring for those impacted by the restructuring,” said Steve Armstrong, Transformation Officer of Ford Motor Company.

“The shared values of trust, ethics and putting people first were the driving force behind our agreement with Tata Motors. We are confident that both the state-of-the-art manufacturing set-up as well as the world-class talent will continue to prosper under the new leadership and help Tata Motors to scale new heights,” Armstrong added.

Both TPEML and FIPL will work together over the next few months to satisfy all the condition precedents and obtain the required regulatory approvals for the closure of the transaction.

Financial Express
 

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