Ford is announcing a £24m investment programme at its Bridgend engine plant in Wales to produce a new fuel-efficient 1.5-litre EcoBoost petrol engine.
Today’s announcement includes Welsh government support of £12m.
The Bridgend plant is the long-term European production base for the new 1.5-litre EcoBoost engine.
Production will start in 2014 and then ramp up over the following two years to ensure that Bridgend output is maintained at optimum capacity during this period.
It will be built alongside the 1.6-litre EcoBoost engine, which was introduced in 2011.
Ford Bridgend produces 2,668 four-cylinder engines each day, with exports to Spain, Sweden, Germany, Russia, Belgium and the USA. This delivers an annual export value of £1.5bn when combined with other Ford UK operations.
Employment at Bridgend will rise to 2,300 this year, the most in its 33-year history.