Michelin to reduce small tire manufacturing, laying off about 500 in Nova Scotia
March 3, 2014 by The Canadian Press
Michelin Canada has announced it will reduce the manufacturing of small tires at one of its plants in Nova Scotia, laying off about 500 workers.
The company says the move is in response to a continuing shift towards larger tires in the North American car tire market combined with the limits of the existing plant in Granton in Pictou County.
Grant Ferguson, president of Michelin North America (Canada), said market demand for the 14- to 16-inch tires produced at the facility is diminishing and it’s not worthwhile to upgrade the 43-year-old plant.
“The market has changed dramatically since the plant was built in 1971, and the company is changing with market demands,” Ferguson said in a statement Monday.
Michelin said the layoffs will occur in two phases. By June 30, 200 employees will lose their jobs when a tire manufacturing production line permanently closes. A year later, the remaining tire production activity at the site will be reduced, putting another 300 people out of work.
The company said the plant will still be operational, including some high-performance car tire production and tire membrane production, and all of the affected workers will have an opportunity to continue working for Michelin at its other two plants in Nova Scotia.
“We have a long history of manufacturing here, and we care deeply about the well-being of our workforce and the community,” Ferguson said. “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.”
Michelin’s two other Canadian plants in Bridgewater, N.S., and Waterville, N.S., are not affected by the layoffs.