Ford, which employs 2,300 workers at its Bridgend plant says the new engine will come off the production line in 2014.
Bridgend already produces 2,668 four-cylinder engines each day and staff numbers says Ford are at their highest in the plant's 33-year history.
The £24m worth of investment announced today includes a grant of £12m from the Welsh Government.
The Welsh Government has greatly assisted in maximising the full potential of Ford’s own investment in Bridgend and we are pleased to meet today with the Welsh First Minister and the Business Minister to recognise this successful partnership.
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A new law will come into force today to ensure people who are homeless or facing homelessness receive help as early as possible.
A mainly fine start to the day turning showery later with more rain to come throughout the week.