Chinese automaker Geely Holding has paid 221 million euros for 34% of the joint venture it will form with Ford to manage the Almussafes plant (Valencia), an operation that values the new company at 650 million euros.
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According to a statement released this Friday by the Chinese group to the Hong Kong stock market regulator, Geely details that its investment amounts to 221 million euros, corresponding to its 34% stake in the new company, while Ford will retain the remaining 66%.
The operation, announced on Thursday by both parties in Almussafes at an event attended by the Spanish Prime Minister, Pedro Sánchez, implies a valuation of 650 million euros for the joint company, which will take over the management of the Valencian factory when it is formally constituted in 2027.
This alliance will allow the industrial capacity of Almussafes to be leveraged to manufacture vehicles of both brands, improve operational efficiency, and strengthen their presence in the European market, as explained by Geely in the statement sent to the regulator. Ford and Geely announced last Thursday the creation of this joint venture to manufacture five models at the Valencian plant, three of which will be new and will be incorporated by the end of 2028 into the current Ford Kuga and the future Bronco.
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According to what has been announced by both companies, the new company will integrate the 4,142 workers of the factory when it is constituted in 2027. Production will combine two SUVs from the Chinese firm and a new crossover multi-energy from Ford with the two models already planned for the plant, the Kuga and the Broco adapted for Europe.
The companies maintain that the alliance seeks to maximize the utilization of the Almussafes facilities and improve their competitiveness in the face of the new automotive sector scenario, and they assure that it will require an increase in the workforce, although they have not yet specified the number of planned hires.
The creation of this joint venture has been favorably received by unions and business organizations, which highlight that the agreement brings stability to one of Spain’s main industrial plants and guarantees workload for the coming years.
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