The province of Nova Scotia and Michelin North America (Canada) Inc. have agreed to invest $50 million in Michelin's Bridgewater tire manufacturing facility.
Michelin is investing $44 million and the province up to $6 million to modernize the plant and increase its tire production capacity. According to Modern Tire Dealer's 2007 Facts Issue, the facility has the capacity to manufacture 14,000 passenger and light truck tires per day.
The expansion addresses the need for greater flexibility, according to Michelin. It also will enable the plant to produce complex tire designs, as well as deliver larger dimension tires for passenger and light trucks.
The project is due to be completed in 2009; 48 new jobs will be phased in as the project progresses.
"We have a significant success story to tell here in Bridgewater, and this investment in our production capacity will help us improve our productivity, reduce costs and remain competitive in the global market," says Geoff Aucoin, plant manager at Michelin Bridgewater.
The province's investment is being provided by the Industrial Expansion Fund. The fund offers a variety of financial assistance to help the economy. Over the last two years, it has helped create or maintain more than 3,000 jobs in the province and has a return on investment of three dollars for every dollar spent.
"Faced with global competition, market fluctuations and changing consumer needs, the automotive sector is volatile at best," says Aucoin. "Tire manufacturers must be ready to quickly adapt their output. With this investment, we will be better able to deliver what the market place demands, when it is needed."
"This government will continue to support companies that believe in our ability to deliver in a globally competitive economy, and who provide good paying, long-term employment to Nova Scotians," adds Canada Premier Rodney MacDonald.
Michelin's Bridgewater facility produces steel cord products and tires for cars, light trucks and SUVs. Michelin opened the facility in 1971.
