NAPANEE, Ontario — Goodyear is expanding its manufacturing facility in Napanee, a $418 million investment that once finished will provide additional capacity for original equipment and replacement all-terrain tires, as well as products designed specially for electric vehicles (EVs).
The expansion was made by Goodyear Canada Inc. and Invest Ontario, a provincial agency that seeks investment opportunities to drive Ontario's economic growth.
The plan calls for as much as $44.3 million in federal subsidies and another $20 million in provincial funding. Goodyear Canada will receive as much as $44.3 million from the Strategic Innovation Fund for the project, while the Invest Ontario Fund will contribute as much as $20 million, subject to reaching a definitive agreement.
Goodyear's Napanee plant, which opened in 1990, employs more than 800 workers. The expansion is expected to create 200 additional jobs.
In a presentation to the Napanee town council in mid-November, Goodyear outlined plans to invest up to $550 million Canadian to expand the size of the Napanee 830,000 sq.-ft. plant by about 50%, to more than 1.2 million square feet, as part of a project to "invest in innovative technology and capabilities to ensure the Napanee plant can manufacture tires that meet the requirements" of the expanding electric vehicle market.
Napanee, a town of 16,000, is located in southeast Ontario, roughly about 135 miles northeast of Toronto and 135 miles southwest of Ottawa. Invest Ontario said the project will expand Ontario's manufacturing capacity of key EV components and "cement Eastern Ontario's role as a significant player in the EV supply chain."
Goodyear CEO and President Mark Stewart called the expansion "central to the company's objective to modernize the facility, enabling scaled production of tires designed for EVs, as well as increasing the plant's capacity to make all-terrain tires."
Stewart said the investment "reinforces our long-term commitment to Canada and enhances our agility and flexibility, positioning Goodyear to meet the evolving needs of our customers now and in the future. We are appreciative to the federal, provincial and local governments for their support and to our Napanee associates for their dedication to building the next generation of tires."
Invest Canada said the investment builds on "billions of dollars" previously invested in the EV sector over the past four years, creating jobs and building out the EV supply chain.
Canadian Prime Minister Justin Trudeau called the announcement "another great step toward the modernization" of Canada's auto sector.
"By partnering with Goodyear Canada, we're driving Canada to the forefront of the clean economy," Trudeau said in a statement. "This investment represents a significant advancement toward innovation in tire technology, helping to modernize the industry. It will not only create high-quality jobs, but also generate substantial economic benefits for Ontarians, reinforcing our commitment to a strong and sustainable automotive sector."
Doug Ford, premier of Ontario, called the move "another vote of confidence in Canada's auto sector workers."
Goodyear recently reported that its second quarter 2024 sales were $4.6 billion with tire unit volumes totaling 40.1 million. Second quarter 2024 net income was $85 million, compared to a net loss of $208 million a year ago.
The Akron-based tire maker also announced recently that it had agreed to sell its off-the-road tire business to Yokohama Rubber Co. Ltd. (YRC) in a $905 million cash sale.
