Ford to build billion dollar plant in India-report

July 27 (Reuters) - Ford Motor Co (F.N) plans to invest $1 billion to build a factory in western India to gain a greater share of one of the fastest-growing car markets, the Financial Times reported on Wednesday.

The U.S. automaker plans to announce its plans on Thursday, according to the report, which cited Ford's head of Asia-Pacific and Africa Joe Hinrichs.

The factory in Gujarat, expected to be up and running by 2014, will employ 5,000 people and is expected to have an initial annual capacity of 240,000 vehicles, the newspaper reported.

Ford's largest single investment in India follows the success of its India-built Figo model, which helped the group nearly triple its sales last year, the FT reported.

Hinrichs was quoted as saying that Gujarat had been selected over other states for its pro-business reputation and geographical location and ports from which to export cars to other emerging markets.

Ford's shares closed down 4.3 percent at $12.37 on Wednesday on the New York Stock Exchange. (Reporting by Divya Sharma in Bangalore) (divya.sharma@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: divya.sharma.reuters.com@reuters.net))