Michelin North America (Canada) Inc. has begun reducing the production of passenger and light truck tires at its Pictou County plant in Nova Scotia. The reduction will continue through June 30, 2015.
The company sites "declining demand for small-size car tires in North America" as the reason behind the move. According to the 2014 Modern Tire Dealer Facts Issue, the plant, located in the city of New Glasgow, has the capacity to produce 8,000 consumer tires a day.
Michelin says it is not closing the plant. Approximately 500 employees will continue to work at the facility after July 1, 2015.
The reduction of tire manufacturing in Pictou County will not affect Michelin’s other two Canadian tire plants in Nova Scotia, according to the company. The Bridgewater plant has the capacity to produce 14,000 consumer tires a day. The Waterville plant can produce up to 5,000 truck tires per day.
All impacted employees in Pictou County will have three possibilities open to them, according to Michelin:
1. transferring to another position at the Pictou County site or to another Michelin plant in Nova Scotia;
2. working in the Michelin Group’s other two Canadian plants; or
3. taking early retirement.
Recognizing that the Michelin Pictou County plant is "a significant part of the local economy," Michelin Canada is launching Michelin Development, a community development program. In its eight-year history in North America, Michelin Development has already helped to grow 84 small businesses and has been instrumental in creating more than 1,300 jobs.
Michelin Canada also says it will invest $66.5 million Canadian dollars to strengthen manufacturing resources in all three of its Nova Scotia tire production facilities. That is in addition to the $587 million Canadian dollars Michelin invested in the facilities from 2005 to 2013.