Province and Michelin to Invest in Bridgewater Facility
An expansion in the Michelin facility in Bridgewater will result in an increased capacity for the production of steel cable and the phasing in of about 36 jobs, as the project progresses.
The province of Nova Scotia and Michelin North America (Canada) Inc. announced today, Aug. 29, a $36-million project to expand and modernize the steel cord products operation at Michelin's Bridgewater facility.
The expansion addresses growing demand for steel cable, which is used in the production of earthmover and truck tires, and is due to be completed in 2008.
Michelin is investing $32 million and the province is investing up to $4.38 million, to increase the operation's cable capacity by 11 per cent to supply plant expansions for truck and earthmover tires at Michelin's Waterville, Nova Scotia, and Lexington, South Carolina, facilities.
"This is exciting news for Bridgewater and for Nova Scotia. Attracting continued investment from global companies like Michelin is a key factor to building a prosperous economy and providing stable, long-term employment in our local communities," said Premier Rodney MacDonald. "This investment supports our commitment to the success of our advanced manufacturing industry in rural Nova Scotia."
The $4.38 million investment incentive is being funded from the Industrial Expansion Fund, which is used to help establish, develop or expand industries in the province. The fund can help companies, like Michelin, secure investment capital and with a return to the province of $3 for every dollar invested, the fund represents a significant return on investment.
"We appreciate the province's financial contribution towards this project and its support of Michelin in Nova Scotia," said Carrie-Jane Bernard, manager of Michelin's steel cord products operation at Bridgewater. "We have a significant success story to tell here in Bridgewater with our steel cord production and this investment in our production capacity clearly demonstrates our ability to grow and remain competitive in the global market."
The growing demand for Michelin earthmover and truck tires is a key driver for this investment in Bridgewater. Michelin's plans for expansion include the addition of about 8,700 square metres to the existing plant structure, modernization of cabling process machinery, and the addition of technical and manufacturing employees related to the production of steel cord products.
"For more than 30 years, the province has enjoyed an excellent working relationship with Michelin," said Carolyn Bolivar-Getson, acting Economic Development Minister. "This expansion is another example of the co-operation between Michelin and the province to work together to create good, high-paying jobs for Nova Scotians."
Michelin's Bridgewater facility produces steel cord products and tires for cars, light trucks and SUV's. Michelin opened the facility in 1971 beginning with the production of steel cord product and two years later followed with its first passenger tire.
The world's largest tire maker, Michelin designs, manufactures and sells tires for every type of vehicle, including airplanes, automobiles, bicycles, earthmovers, farm equipment, heavy-duty trucks, motorcycles and the space shuttle. The company also publishes travel guides, maps and atlases covering Europe, Asia, Africa and North America.
Headquartered in Laval, Quebec, Michelin North America (Canada) Inc. employs about 3,500 people in Nova Scotia and operates three plants in the province making them the fourth-largest employer in Nova Scotia.