Michelin closes one Canadian plant, announces another

BFGoodrich Tire Manufacturing, a business of Michelin North America (Canada) Inc., announced that it will close its Kitchener, Ontario plant. Manufacturing operations will continue until July 22, 2006. The company will shift production to other BFGoodrich Tire Manufacturing facilities in North America. The Kitchener plant produces BFGoodrich, Uniroyal and private and associate brand mass market passenger tires, primarily for the U.S. market.

“The decision to close the Kitchener plant was very difficult,” said Guy Pekle, president of Michelin North America (Canada) Inc. “BFGoodrich has made significant investment in the plant, as well as its three other North American plants; however, overcapacity continues to exist in this segment of the market. The competitive nature of today’s tire industry requires the company to invest and maintain production in the plants that can compete successfully in an increasingly difficult global market.”

Michelin North America (Canada) Inc., is also establishing a Michelin Development Program to assist in the creation of new jobs from diverse industries within the community. The Kitchener plant employs approximately 1,100 wage and salaried employees.

In an unrelated move, Michelin North America announced that the firm will invest $92 million to install production for Michelin’s X-One wide single truck tires at its Waterville, Nova Scotia plant. The province has made a commitment of $10.8 million. The expansion will double Michelin’s X-One tire capacity and will add about 75 new jobs to be phased in as the project progresses.

“This investment and the assignment of the X-One tire production to Waterville is a testament to the skills of our people and their ability to deliver and remain competitive in the global tire market,” says Grant Ferguson, plant manager of Michelin’s Waterville Facility.

Michelin’s plans for expansion include new equipment and additional technical and manufacturing employees related to the production of X-One wide single tires, making Waterville the second largest truck tire manufacturing plant in Michelin’s global network.