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
Before the plane took off on February 16, teacher Juhel Miah was escorted off the flight by security.
Our Valleys Correspondent Hannah Thomas has been spending time discovering why the people who live in the Valleys love their communities.
The Cardiff-born centre, who celebrated his 24th birthday earlier this month, has signed a two-year deal with the region.