Ford Motor Co. inks an agreement with Spain’s UGT union to invest E425 million ($580 million) in its Almussafes, Valencia, assembly plant, securing vehicle assembly at the facility until 2013.

Under terms of the agreement, Ford will introduce up to three new small and midsize vehicles at the plant, which will have a annual capacity of 350,000 units and operate on three shifts.

The facility currently produces the Ford Fiesta, Focus and Ka and Mazda2.

Ford of Europe President and CEO John Fleming says he is pleased to be able dispel uncertainties surrounding the plant.

“I have always said it was one of our most efficient and flexible plants in Europe,” he says.

The UGT union will assist Ford in cutting costs to ensure Valencia remains competitive with other European manufacturing plants.