LOUISVILLE, Ky. -

Ford is refurbishing one of its plants in hopes the additional capacity and infrastructure will enhance its capability to produce fuel-efficient units and respond to quick-changing dealer and consumer demand.

The automaker said Thursday it’s taking $600 million to transform its Louisville Assembly Plant into a modern, flexible facility for manufacturing the next-generation Escape for the North America market starting late next year.

Executives pointed out this plant is the third North American body-on-frame truck facility that Ford is re-tooling to enable production of fuel-efficient products from its global vehicle platforms. They noted Louisville Assembly has been building the Ford Explorer since 1989.

Ford indicated that it moved production of the all-new 2011 Explorer to Chicago Assembly in order to overhaul the Louisville facility.

When the transformed Louisville Assembly Plant restarts production next year, officials mentioned it will operate on two shifts with approximately 2,900 employees. Currently, they said the plant uses only one shift and approximately 1,100 employees.

Ford thinks the 1,800 additional jobs are expected to be filled through a combination of transferring employees from other facilities, re-activating workers on indefinite layoff at the time of launch and hiring new workers.

The Escape scheduled to be produced at this reconfigured plant is expected to debut at the North American International Auto Show in January, according to officials.

Beyond making the Escape, Ford highlighted the capability of the tooling and facility upgrades in its final assembly area and body shop. Louisville is scheduled to house reprogrammable tooling in the body shop geared to allow the plant to produce multiple vehicle models at the same time without requiring downtime for tooling changeover. Ford believes this strategy should make the Louisville Assembly Plant its most flexible high-volume plant in the world.

With this new technology, the OEM explained Louisville Assembly can build up to six different vehicles at the same time, allowing Ford to meet demand more quickly in the event of potential shifting customer preferences dictated by changing economic conditions.

“Our Louisville Assembly Plant transformation further proves our commitment to American manufacturing and our commitment to deliver the high-quality, fuel-efficient vehicles people really want,” declared Mark Fields, Ford’s president of The Americas.

“Working closely with the UAW and Kentucky officials, we have found a way to competitively deliver an important new vehicle that is good for our customers and supports our plan to deliver a well-balanced product portfolio of cars, trucks and utilities,” Fields continued.

Jim Tetreault, Ford’s vice president of North America manufacturing, elaborated how the flexibility this refurbished facility should have coincides with the automaker’s overall strategy.

“Manufacturing flexibility is a key to competitiveness, and we are continually exploring ways to raise the bar in this critical area of the business,” Tetreault insisted.

“While we are launching Louisville Assembly Plant with one key product — the next-generation Ford Escape — we are building in the flexibility to produce other vehicles at the plant in the future, depending upon volume requirements, customer preferences and other factors that affect vehicle demand,” he continued.

Ford emphasized the Commonwealth of Kentucky and the city of Louisville were key partners in strengthening the foundation for its commitment to American manufacturing in Louisville.

The OEM indicated state and local partners have committed up to $240 million in tax incentives during the next 10 years, based on current and potential future investments and job creation at the company’s two Kentucky facilities — Louisville Assembly Plant and Kentucky Truck Plant.

Officials explained Kentucky’s incentives are based upon an initial combined Ford investment at both facilities of about $800 million — the $600 million for Louisville Assembly transformation and the previously invested $200 million for accommodating Ford Expedition and Lincoln Navigator production at Kentucky Truck Plant. They added the incentives also allow for further future investment.

“We are grateful to the Commonwealth of Kentucky and the city of Louisville for their support of Ford and our commitment to manufacturing here,” Fields asserted.

“With Louisville Assembly Plant up and running next year, Ford will have nearly 6,600 employees in Kentucky, and the work we have done together makes this an important manufacturing center of excellence for us,” he went on to say.

Gov. Steve Beshear responded by stating, “Kentucky takes great pride in its ongoing partnership with Ford Motor Co. The transformation of the Louisville Assembly Plant demonstrates the depth of that relationship and the tremendous results that can occur when state and local government and the private sector work together.

“It is because of our relationship that the Commonwealth proactively approved an amended incentive package that will create the flexibility to potentially increase Ford’s investment and jobs at Louisville Assembly Plant and Kentucky Truck Plant over time,” Beshear also noted.

Furthermore, Ford mentioned its investment of $600 million in Louisville Assembly Plant for production of the next-generation Escape also is supported by the company’s green partnership with the U.S. Department of Energy.

Officials explained the Louisville Assembly Plant is one of 11 Ford facilities in the U.S. participating in the Advanced Technology Vehicles Manufacturing Incentives Program initiated by Congress and implemented by the Obama administration. The program is meant to help develop advanced technology vehicles and strengthen American manufacturing across the country.

“Only one word can capture the magnitude of today’s announcement — wow,”declared Louisville mayor Jerry Abramson.

“Ford is making a long-lasting investment in the company’s future in Louisville, Kentucky and a tremendous commitment to our citizens by dramatically expanding the number of good-paying jobs,” Abramson concluded.