Ford says the multi-million pound investment package at its Ford engine plant in Bridgend will help safeguard jobs.
The £24m will be spent on producing a new engine.
Ford says the 1.5-litre EcoBoost petrol engine uses technology that delivers the power of a larger engine with smaller unit fuel consumption. Production will start in 2014.
It will be built alongside the 1.6-litre EcoBoost engine, which was introduced in 2011.
More top news
A windy day, with rain gradually spreading from the south-west further into the rest of the country.
A man and two teenagers have been arrested after a man was stabbed to death in Rhyl in the early hours of this morning.
It will be a dry night with clear spells for all of us, but the south-easterly wind will increase, becoming rather windy by morning.