Michelin investing $225M in Canadian tire plants

BRIDGEWATER, Nova Scotia — Michelin Group is planning to invest $225 million (C$300 million) in its Canadian operations to accelerate sustainable mobility initiatives and improve the company's environmental footprint.

The investment will cover the installation of new technologies and equipment at Michelin's three tire plants in Nova Scotia in a bid to respond to market evolution, including converting production to tires for the growing electric vehicle (EV) segment and larger rim-size tires for passenger and light truck vehicles, as well as truck tires with improved fuel efficiency.

Michelin also plans to electrify key parts of the manufacturing process to reduce carbon emissions.

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"Michelin is committed to developing the mobility of goods and people and doing so in a cleaner and more sustainable way," Michelin North America Inc. President and CEO Alexis Garcin said.

"With these investments, we will … continue to add capacity in the most strategic segments of the tire market to support the transition to electric vehicles and to energy-efficient freight transportation, while further reducing the environmental footprint of our products and our plants."

A key part of the multi-year plan is the $104 million expansion of Michelin's Bridgewater passenger and light truck tire plant, which will add more than 70 positions to the workforce there, which is listed as 1,148 employees at last report.

Michelin's other plants are in Granton-Pictou (passenger and light truck tires) and Waterville (medium truck tires).

Michelin last disclosed investment in Canada in 2018, when it budgeted $16 million at the Granton plant to support the launch of a winter tire designed specifically for the North American market.

More recently, Michelin announced in late 2020 a $175 million investment in its South Carolina production facilities.

"Companies understand the excellence of Canada's workers and auto sector — and today's announcement is a testament to that," Canada Prime Minister Justin Trudeau said, adding that "when we invest in our workers, we build communities and an economy that works for everyone, while leaving a stronger, healthier future for our kids."

Andrew Mutch, president of Michelin North America (Canada) Inc., stressed that the investment will allow Michelin to "strengthen the competitiveness of our factories for our current and future workforce."

"Today's announcement is great news for the future of Canada's auto sector," François-Philippe Champagne, Canada's minister of Innovation, Science and Industry, said.

"We are proud to partner with Michelin on a project that will support Canada's advancement in the transportation sector and keep Canada on the cutting edge of the clean economy.

"With this investment, we are continuing to build a strong auto sector ecosystem by supporting the development of clean technology in the tire industry, creating well-paying jobs and generating economic benefits for Nova Scotians."

"... Michelin's decision to modernize and expand its operations here speaks volumes about our business environment," Nova Scotia Premier Tim Houston said.

"Michelin's strong commitment to greening their operations aligns with our government's plan for a clean and green economy, where the environment and Nova Scotians can thrive, and no one is left behind."