Michelin has announced a C$300 million investment into its Canadian operations to further improve its environmental footprint.
This multi-million dollar investment, part of Michelin’s global growth strategy, will include installation of new technologies and equipment. This investment will allow the company to produce more energy efficient tires, including ones used for electric vehicles. The new equipment will be installed in Michelin’s three Nova Scotia production facilities.
In addition, the electrification of key parts of the manufacturing process will reduce carbon emissions at the plants, the company says.
“Michelin is committed to developing the mobility of goods and people and doing so in a cleaner and more sustainable way,” said Alexis Garcin, president and chief executive officer of Michelin North America, Inc. “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.”
Apart from its sustainability initiatives, this funding is also focusing on creating new jobs. The multi-year plan also includes a C$140 million expansion of Michelin’s Bridgewater plant, which will add 70 new positions.
“Companies understand the excellence of Canada’s workers and auto sector – and today’s announcement is a testament to that,” said Prime Minister Justin Trudeau in an announcement yesterday. “Here in Nova Scotia, we are once again seeing that when we invest in our workers, we build communities and an economy that works for everyone, while leaving a stronger, healthier future for our kids.”
Pending a final agreement, Michelin could receive up to C$44.3 million in federal funding through the Strategic Innovation Fund. Michelin will also receive a provincial tax credit of C$61.3 million over the next five years from the province of Nova Scotia for their expansion. Through this project, Michelin expects to secure almost 4,000 jobs across the company’s three plants in Bridgewater, Pictou, and Waterville, Nova Scotia.
“Today’s announcement is great news for the future of Canada’s auto sector. We are proud to partner with Michelin on a project that will support Canada’s advancement in the transportation sector and keep Canada on the cutting edge of the clean economy. With this investment, we are continuing to build a strong auto sector ecosystem by supporting the development of clean technology in the tire industry, creating well-paying jobs, and generating economic benefits for Nova Scotians,” said François-Philippe Champagne, Minister of Innovation, Science and Industry.