GRANTON, PICTOU COUNTY, NS, March 3, 2014 /CNW/ - Michelin North America
(Canada) Inc. announced today it will significantly reduce tire
manufacturing at its Pictou County Nova Scotia car and light truck tire
plant over the next 18 months. The move is in response to a continuing
shift in the North American car tire market to larger size tires and
the limits of the existing plant.
"The market has changed dramatically since the plant was built in 1971,
and the company is changing with market demands," said Grant Ferguson,
president, Michelin North America (Canada) Inc. "Market demand for
small car tire dimensions, such as the 14-, 15-, and 16- inch tires
produced at the Pictou County plant is diminishing. Investment costs
to upgrade the 43-year-old plant for larger car tire production are not
Reduction of Michelin Pictou County tire manufacturing by July 2015
By June 30, 2015, tire production at the plant will be significantly
reduced, impacting about half of the current employees at the facility.
The manufacturing change will occur in two phases: by June 30, 2014, a
tire manufacturing production line that produces small dimension car
tires will permanently close, affecting approximately 200 employees. By
June 30, 2015, the remaining tire production activity at the site will
be reduced, impacting approximately a further 300 employees.
Operations to continue at Pictou County site
"We have a long history of manufacturing here, and we care deeply about
the well-being of our workforce and the community," said Ferguson. "We
will continue as a significant manufacturing employer in Pictou County
with our remaining operations on site, and we will continue to invest
in Nova Scotia."
Significant aspects of Michelin's Canadian operations will continue at
the Pictou County site. Some high-performance car tire production, tire
membrane production and the existing rubber mixing operation will
continue along with the company's Canadian corporate offices.
The reduction of tire manufacturing at Michelin Pictou County will not
affect Michelin's other two Canadian tire plants in Bridgewater and
Waterville, Nova Scotia.
All impacted employees will have opportunity to continue working for
All impacted Michelin Pictou County hourly and salary employees will have an
opportunity to relocate to the company's tire production facilities
located in Bridgewater and Waterville, Nova Scotia. Severance packages
are available for all impacted employees.
"We will work closely with all Michelin Pictou County employees affected
by this decision to assess their situation and to help determine their
best option and their choice moving forward -- whether they will be
able to retire, transfer to another position or transfer to another
Michelin location in Nova Scotia," said Ferguson.
Continued investment in Nova Scotia
Michelin remains the largest private manufacturer in Nova Scotia and has
invested almost $2 billion in its operations since it began operations
in 1969. In the last eight years, from 2005 to 2013, Michelin invested
$587 million in its Nova Scotian manufacturing operations.
"Michelin remains committed to Nova Scotia, as evidenced by the fact
that this year alone we plan to invest a total of $66.5 million in our
three Nova Scotia plants," said Ferguson. Investments include projects
at Bridgewater to extend wire capacity, ongoing investments in the
Waterville MICHELIN ® X One® January 2013 investment project, along
with a $10-million investment slated for in the rubber mixing operation
on the Pictou County site.
Michelin Development to open in community
Recognizing the Michelin Pictou County plant is a significant part of
the local economy, Michelin Canada is also launching Michelin
Development, a community development program to assist in the creation
of new jobs in the small business sector in the neighbouring
communities of Colchester, Pictou, Antigonish and Guysborough counties.
Michelin Development provides low-interest business loans and small
business expertise to eligible applicants. More information on this
program will be released later this spring.
"Michelin Development has an impressive track record of success," said
Ferguson. "We are pleased that the company is willing to further invest
in our area to help foster economic growth. In its eight-year history
in North America, Michelin Development has already helped to grow 84
small businesses and is instrumental in creating over 1,300 jobs."
Dedicated to the improvement of sustainable mobility, Michelin designs,
manufactures and sells tires for every type of vehicle, including
airplanes, automobiles, bicycles, earthmovers, farm equipment,
heavy-duty trucks and motorcycles. The company also publishes travel
guides, hotel and restaurant guides, maps and road atlases.
Headquartered in Greenville, S.C., Michelin North America employs more
than 22,000 people and operates 18 major manufacturing plants in 16
locations. In Canada, Michelin's Sales and Marketing office is located
in Laval, Quebec, and the company operates three manufacturing plants
in Nova Scotia, along with its corporate offices.
SOURCE: Michelin Canada
For further information:
Deborah Carty, Michelin Canada, 902.670.1837 / Deborah.firstname.lastname@example.org