Ford Motor Company (NYSE:F) is expanding is production plant in Ohio to meet the increasing demand in the United States for fuel-efficient vehicles.

Because of the expansion, the car manufacturer will be hiring an additional 450 workers, according to a report from The New York Times.

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According to the car manufacturer, it will spend $200 million to renovate its engine plant in Cleveland to manufacture small, turbocharged engines, which will be utilized for its top selling vehicles. Ford Motor Company (NYSE:F) is the second largest car manufacturer in the United States.

Last December, the car manufacturer announced that it would invest $773 million for the modernization of its Dearborn Stamping plant and add four press lines to manufacture its next generation F-series trucks. The company said it would also refit its plant in Michigan to increase its production for small cars.

Ford Motor Company (NYSE:F) also announced last year, that it would invest in three other plants including Van Dyke Transmission Plant, Livonia Transmission Plant and Sterling Axle Plant.

The company said its investments are part of its commitment with the United Auto Workers in 2011 to expand and invest $6.2 billion. The company’s expansion plan is expected to create 2,350 total jobs in Southeast Michigan alone, this year.

Ford Motor Company (NYSE:F) added 8,000 salaried and hourly jobs last year. The company plans to hire additional 2,200 white-collar workers this year. It is transferring some of its vehicle production from Mexico to Michigan. The move will create 1,200 jobs in its Michigan plant.

Since the recession, car manufacturers in the United Stated, including Ford, cut labor costs and improved their production. The car manufacturer was forced to consolidate its two engine plants in Ohio and closed a major component operation.

Joe Hinrichs, head of the Americas region for Ford Motor Company (NYSE:F) said, “No question we have been through a lot in northern Ohio. But now our North American business is very competitive with the best in the world.”

The second largest car manufacturer plans to centralize the production of its 2-liter, EcoBoost engine at its Cleveland Plant. At present, Ford is manufacturing the engines in a plant in Spain. The company then ships the engines to the United States. According to the company, its workers in Spain will be transferred to another plant that will take work from a plant in Belgium, which be shut down.

Currently, Ford’s plant in Cleveland has 1,300 workers.  “This is about servicing more demand in the U.S. And with our competitive labor agreements, we can bring business to the U.S. from Spain and Mexico,” Hinrichs said.