Province and Michelin Invest in Bridgewater Expansion

The installation of modern, more efficient equipment at a Michelin facility in Nova Scotia will result in increased production and about 48 new jobs.

The province of Nova Scotia and Michelin North America (Canada) Inc. announced today, July 4, a $50-million project to modernize and increase tire-production capacity at Michelin's Bridgewater facility.

Michelin is investing $44 million and the province is investing up to $6 million towards the expansion.

"This is a great day for Bridgewater and for Nova Scotia. Companies like Michelin see that an investment in Nova Scotia is a smart investment. They are helping us build a new Nova Scotia," said Premier Rodney MacDonald. "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."

The expansion addresses the need for greater flexibility and 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 and the new jobs will be phased in as the project progresses.

"This is a great honour for everyone here at Michelin Bridgewater. With this modernization project, we're proving capital investments in Nova Scotia work. We appreciate the province's financial contribution towards this project and its belief in Michelin in Nova Scotia," said Geoff Aucoin, plant manager at Michelin Bridgewater.

"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."

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 past 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.

As part of the expansion, Michelin will be adding new equipment and expanding capacity. The company's plans for modernization will enable it to be more flexible and respond rapidly to an ever-changing automotive industry.

"Faced with global competition, market fluctuations and changing consumer needs, the automotive sector is volatile at best. Tire manufacturers must be ready to quickly adapt their output," said Mr. Aucoin. "With this investment, we will be better able to deliver what the market place demands, when it is needed."

Michelin's Bridgewater facility produces steel-cord products and tires for cars, light trucks and sport utility vehicles. The Nova Scotia "Come to life" charter member opened the facility in 1971, beginning with the production of steel-cord product and, two years later, followed with passenger tires.

"For more than 35 years, Michelin has lived up to its commitments and created employment opportunities for Nova Scotians," said Economic Development Minister Richard Hurlburt. "With this expansion, Michelin is showing confidence in our skilled workforce and commitment to the local community."

Mr. Hurlburt said investing in the renewal and expansion of Nova Scotian businesses helps to secure their future viability, something that is critical to the province's economic prosperity.

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, hotel and restaurant guides, maps and road atlases.

Headquartered in Laval, Que., Michelin North America (Canada) Inc. employs about 3,700 employees and operates three plants in the province, making them the fourth-largest employer in Nova Scotia.