Trade and Industry Secretary Patricia Hewitt has announced a £4.5m grant to create up to 460 jobs at a manufacturing facility in Dagenham, Essex.
The DTI grant, Selective Finance for Investment in England, has been offered to Ford Motor as part of a £169m investment project to build two diesel engines, creating up to 460 jobs.
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Ford employs 335,000 people worldwide, and in 2003 generated revenues of more than US$164bn (£85bn).
Hewitt said: “Today’s announcement helps maintain the UK position as a global centre of automotive manufacturing excellence.”