"Michelin is committed to developing the mobility of goods and people and doing so in a cleaner and more sustainable way," Alexis Garcin, Michelin North America president and CEO, said in a statement. "With these investments, we will do exactly that: 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."
The largest portion of the $220 million investment in equipment and technological upgrades—about $102.5 million ($140 million CAD)—will go toward the Bridgewater plant, which has an annual capacity for about 60,000 tons of passenger and light truck tires, according to the latest Rubber News data. Michelin also anticipates adding 70 positions at the facility where it currently employs around 1,150.
Michelin also stands to benefit from the province’s newly increased Capital Investment Tax Credit, which could represent tax savings of nearly $50 million ($61.3 million CAD) over five years, based on the planned investment.
The Capital Investment Tax Credit is a refundable corporate income tax credit for capital costs of new equipment used primarily in manufacturing or processing goods for sale or lease, farming or fishing, logging, storing grain or harvesting peat.
Michelin operates three plants in Nova Scotia. It has facilities in Bridgewater and Granton-Pictou, which also manufactures P/LT tires. The Granton-Pictou plant, opened in 1971, has capacity for about 9,000 tons per year, according to Rubber News data.
The plant in Waterville is dedicated to truck/bus tires and has an annual capacity of around 137,500 tons per year. That facility, opened in 1982, employs about 1,280.
"We're excited to continue to enhance and grow our operations in Canada," Andrew Mutch, president of Michelin North America (Canada) Inc. "We have a wonderful history of manufacturing tires here for more than 50 years, and I'm thrilled we can strengthen the competitiveness of our factories for our current and future work force."
Among Michelin’s most recent North American investments were a $75 million commitment to its commercial truck facilities in Waterville and Spartansburg, S.C. Garcin told Rubber News last year that the company also increased manufacturing at its Shawinigan, Quebec, plant.