FORD has softened the blow of its Geelong engine plant closure with the news it will build its popular small car, the Focus, in Melbourne.

The company yesterday announced the Focus will be built at the Campbellfield plant from 2011, creating 300 new jobs to offset the 600 cut from its Geelong engine plant.

It says by building the Focus in Victoria - in hatch and sedan, petrol and diesel form - it will be able to further tailor the small car to Australian tastes and conditions.

Ford is expecting the annual production of 40,000 Focus vehicles will push the Campbellfield plant back to full capacity.

The company is aiming to increase its local sales volume of Focus cars well beyond its current 2000 per month.

"We're not happy being a distant number three in the segment," Ford Australia boss Tom Gorman says.

The remaining 15,000 per year are expected to be exported to South Africa and New Zealand.

The local production will take over from the South African factory that currently supplies Australian Focus vehicles for sale.

Australian component suppliers will also have the opportunity to become involved, with talks beginning immediately to determine the opportunities for inclusion in the fully integrated manufacturing process.

Tenneco, at Tonsley, is a current Ford supplier for dampers and exhausts.

Human resources director Phil McMahon said building the Focus in Australia was good news for the industry.

"I would say so, for the industry in general and if there's an opportunity to quote on that product I'm sure we'll be standing up for that," he said.

"Local ride requirements are a good opportunity for us.

"We do Falcon exhausts and we are going to be doing the Territory, which was a nice win for us recently."

Mr Gorman said making the Focus in Australia improved the company's capacity utilisation and strengthened Ford Australia's integration into the global company.

"It also reflects the contemporary market demands for smaller vehicles and opens up significant additional export opportunities within the region," he said.

"We look forward to offering Australians their first locally produced small car in more than a decade."

Source: [url=http://www.geelongadvertiser.com.au/article/2007/07/24/5621_news.html]Geelong Advertiser[/url]