Sept. 3 (Bloomberg) -- Ford Motor Co. will resume production of engines at an idled Ontario engine plant, in part with federal funding of as much as C$80 million ($75 million), Canada's government said.

The automaker may build various types of engines at the Windsor factory as a result of the project, which also includes a new research center and represents an investment of as much as C$730 million, Industry Minister Jim Prentice said in a statement.

Ford, the world's third-largest automaker, will ``create or sustain'' up to 757 jobs as part of the project, Prentice said. The revamped ``flexible'' factory will be able to change the type of engines produced as market demand shifts, he said.

Today's announcement follows an Ontario government statement in March that Dearborn, Michigan-based Ford would resume engine output at Windsor. The automaker at that time wouldn't discuss details of the project.

Ford rose 6 cents to $4.57 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have fallen 32 percent this year.

To contact the reporter of this story: Bill Koenig in Southfield, Michigan at wkoenig@bloomberg.net; Hugo Miller in Toronto at hugomiller@bloombergnet

Last Updated: September 3, 2008 16:26 EDT