Ford has invested $170m at its Silverton Assembly plant in Pretoria, South Africa to manufacture new Ford Everest and Ford Ranger.
The American car-maker says that this investment will create about 1200 jobs in Ford South Africa and in the local supplier network.
Production of Everest at the Silverton plant will begin during the third quarter of 2016 and the first Everest SUVs are expected to roll out during the last quarter of the year.
The plant will receive state-of-the-art equipment which will be used in the production of Ford Everest as well as Ford Ranger, which was introduced recently in South African market.
With improved equipment, Ford estimates that it can produce at least 10,000 Everest SUVs per year at the plant. Ford Everest SUVs produced at the plant will be sold in local markets and in Sub-Saharan regions in Africa.
Ford executive vice president and Europe, Middle East and Africa president Jim Farley said: "Our customers love the capability and utility offered by the all-new Ford Everest.
"By producing the Everest in South Africa, we will be able to make it more readily available, and in a greater variety of models, for customers throughout Sub-Saharan Africa.
"The R2.5-billion investment reaffirms the importance of these markets as part of our growth strategy across the Middle East and Africa.
"It further reinforces South Africa's position as a strategic export base for Ford Motor Company."
According to Ford, there has been a very good response for Everest and the demand outstripped supply in the region.
At present, the new Everest is being produced at Thailand and is being imported.
Everest SUV features a 3.2 liter five-cylinder engine and after commencement of production at the plant, the company plans to offer a 2.2-litre Duratorq TDCi four-cylinder diesel engine.
In the recent years, Africa in general and South Africa in particular, have emerged as promising markets for Ford. Ford has been selling record number of passenger cars and light commercial vehicles in African region.
Ford Motor Sub-Saharan Africa Region president and CEO Jeff Nemeth said: "As we continue to grow our business here in South Africa we are committed toimproving the skills of our employees and creating new opportunities within the company and the broader supply chain.
"It is only through the dedication and commitment of our work force, suppliers, dealers, union and government partners that we have been able to secure this investment and expand our operations, broadening our footprint in Africa even further."
Image: Ford Everest now to be produced in South Africa. Photo: Courtesy of Ford.