Michelin Waterville Expands Again
For the third time in the past year, Michelin North America (Canada) Inc. announces a major expansion of its Nova Scotia operations.
Michelin plans to invest an estimated $80 million Cdn to increase production capacity of truck tires at its Waterville facility in the Annapolis Valley. The expansion will create about 130 positions, which will be filled through new hiring or the reassignment of existing employees starting in early 2000.
This investment is on top of the $71 million that was announced previously for the Waterville plant. Total projected investment now stands at $151 million over the next three years. The expansion announced today will increase the plant's truck tire capacity by 30 per cent in response to a strong North American truck tire market.
"The year 1998 has been an exceptional year for the Waterville facility," said Leon Jaklic, Waterville facility manager. "The expansion of rubber-making capacity currently under way at the Pictou County facility has helped to make our truck tire expansion possible, not to mention the great teamwork of employees at this facility. The diligence and dedication of our employees are, in great measure, responsible for not only these expansions but our QS9000 registration and reaching the 10-millionth tire milestone earlier this year."
To help secure this investment, the province will provide up to $10 million, over 10 years, to assist with recruitment, training and site preparation. The provincial government will also forgive the remaining $10 million of a $48-million loan approved in 1988.
"This is another sound investment in our long-term future with Michelin," said Premier Russell MacLellan. "The expansion will bring 130 quality manufacturing jobs and tens of millions of dollars in spinoff benefits to the Valley economy. Our investment will also ensure that Michelin's Waterville employees are among the best, most highly trained in the industry. And that's the best kind of job security you could ever get."
The equivalent of the total provincial investment will be paid to the 130 Nova Scotians in the newly created jobs in about three and a half years. The expansion will also generate an estimated $21 million in new business for outside contractors.
This expansion -- the third to be announced by the company in the past year -- brings the total new investment in Michelin's Nova Scotia facilities to $310 million over three years, and total job creation to 294. The three projects will generate an estimated $85 million in new business for outside contractors, on top of the $35 million in contracts for goods and services the company already provides each year. The previously announced projects are on or ahead of schedule at all three facilities.
"This announcement demonstrates that we are committed to exploring every opportunity that will enable our Nova Scotia operations to compete and grow in a global market," said George Sutherland, general counsel for Michelin North America (Canada) Inc.
"The support of the Province of Nova Scotia has been instrumental in securing these three expansions. They are further evidence of the co-operation and strong relationships of Michelin with its 3,500 Nova Scotian employees, with its suppliers of goods and services, with the communities in which we operate and with governments at every level. The province continues to be a good place in which to invest and we are optimistic for the future of Michelin in Nova Scotia."
Michelin employees in Nova Scotia produce passenger car, light truck, truck and earthmover tires at plants in Waterville, Bridgewater and Pictou County.
FACT SHEET: Michelin Expansions in Nova Scotia, 1997-1998
Investment Project Jobs
WATERVILLE
Nov. 97 $66M - truck tire production transfers
from Pictou County 75 jobs\
- increase earthmover tire production
25 jobs
May 98 $ 5M - increase truck tire production 14 jobs
Sept. 98 $80M - increase truck tire production 130 jobs
Total $151M 244 jobs
BRIDGEWATER
Nov. 97 $16M - increase steel cord production 15 jobs
Total $16M 15 jobs
PICTOU COUNTY
Nov. 97 $68M - produce Pilot high-performance tire
and transfer truck tire production to
Waterville\
- increase sport utility vehicle tire
production\ - increase rubber-mixing capacity \
- (affected employees reassigned) (35 jobs)
April 98 $75M - increase rubber-mixing capacity 70 jobs
Total $143M 35 jobs
NS TOTAL $310M Cdn 294 New Jobs