The Ford engine plant in Bridgend will learn next month whether it will be the location for a new off road vehicle in an investment boost creating at least 500 new jobs.
Bridgend is up against Portugal in a bid to be chosen for the project from Ineos Automotive and its new 4 x4 vehicle.
When Jaguar Land Rover announced it was ceasing production of its original Land Rover Defender in 2016, Projekt Grenadier was launched by Ineos to fill what they saw as a lucrative gap in the marketplace.
It comes after last week unions warned that Ford is planning to cut 1,000 jobs at the engine plant in Bridgend over the next few years.
The plant currently employs around 1,700.
A decision by Ineos Automotive, a subsidiary of one of the UK’s biggest firms in petro-chemical giant Ineos Group, is expected by the middle of February.
Due to a number of factors , including currency exchanges rates, it is understood that production of vehicles in Portugal would be cheaper by around £700 than at Bridgend.
However, that cost position fluctuates. It is understood that Ineos Automotive is looking to the UK Government to help bridge that cost diference.
It is also understood that the Welsh Government have also worked up a major financial support package for the project, as well as supporting Ford itself.
Ineos declined to comment on how many direct jobs Projekt Grenadier could create, as well as those supported in the wider supply chain.
It also wouldn’t comment on when production could start and how many vehicles a year would be produced once the operation reached full capacity.
A spokesman for the company said: “No decision has been made yet and I can’t comment until then.”
However, it is understood that if the Ford plant is selected to build the new vehicle it would create at least 500 direct jobs.
This would provide the opportunity for current Ford staff facing redundancy being able to take up new roles with Ineos – a move that could require some training.
A project win over Portugal would also support hundreds more in the wider UK supply chain. Many of the components for the new vehicle are expected to come from UK suppliers who worked alongside JLR and its Land Rover Discovery.
It is understood that the Bridgend factory would provide space for the project in production areas currently used to manufacture engines for JLR. That production line will end next year.
The Welsh Government declined to comment on how many jobs Ineos could bring to the Bridgend plant.
However, when asked about any future investment projects at the Bridgend plant, it said: “The Welsh Government has always been totally committed to developing a bright and sustainable future for the Ford plant in Bridgend.
“It has demonstrated this in word and in deed over many years, with the latest round of support coming through nearly £15m of funding to help bring production of the Dragon engine to Bridgend.”
Founder and chairman of Ineos Group is Sir Jim Ratcliffe who is supportive of the UK leaving the European Union. The group generates annual revenues of more than £40bn.
There are around 150 firms operating in the automotive sector in Wales, generating £3bn of output. It directly employs around 18,000.
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