Goodyear Canada Invests CAD 575 Million In Napanee Plant Expansion Including EV Tires

Goodyear Canada Inc. has unveiled plans for a CAD 575 million ($418.3 million) expansion and modernization project at its Napanee, Ontario plant, focusing on electric vehicle (EV) and all-terrain tire production with support from both federal and provincial governments, totaling up to CAD 64.3 million ($46.7 million) in subsidies.

Prime Minister Justin Trudeau and Ontario Premier Doug Ford joined Goodyear executives in Napanee to announce the project, which is set to create 200 new skilled manufacturing jobs by 2027 and secure over 1,000 existing positions. The expansion will take place on the same land as Goodyear’s existing plant, which has been operating in Napanee for 35 years.

Mark Stewart, CEO and President of Goodyear, stated that the investment “reinforces our long-term commitment to Canada and enhances our agility and flexibility, positioning Goodyear to meet the evolving needs of our customers now and in the future.”

The modernized plant aims to create an “energy-efficient, end-to-end manufacturing process” and increase production capacity to two million tires annually. A key focus of the expansion is the production of specialized tires for EVs, which require different specifications due to their increased weight and quieter operation.

Read More: EV 101: What Is An EV Tire

Moreover, the federal government will provide up to CAD 44.3 million ($32.2 million) through the Strategic Innovation Fund, while the Ontario government, through Invest Ontario, will contribute CAD 20 million ($12.5 million). These funds will support the implementation of innovative technologies and skills training programs.

Canada’s EV Manufacturing Investments

Environmental considerations are at the forefront of the project, with Goodyear committing to reduce greenhouse gas emissions at the Napanee plant by 10% by 2030 and achieve net-zero emissions by 2040. As a result, this aligns with Canada’s broader goal of a net-zero economy by 2050.

Notably, the investment is part of a larger trend in Canada’s automotive landscape, with over CAD 46 billion ($33.5 million) in EV manufacturing investments announced across the country in the last four years. Premier Ford highlighted this, stating, “Goodyear Canada’s investment is another significant boost to Ontario’s growing electric vehicle sector, building on the billions of dollars that have been invested in the sector over the past four years.”

With this expansion project, it is expected to strengthen Canada’s position in the evolving automotive industry, particularly in the EV sector. It also represents a strategic move for Goodyear as the company adapts to the changing demands of the automotive landscape, with a growing emphasis on electric and sustainable transportation solutions.

As this investment by Goodyear spotlights the increasing importance of adapting traditional automotive components including tires, the efforts made to also address the specific needs of EV tires will be paramount for accelerating the transition to electric mobility in Canada’s automotive landscape.

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