Tire maker Goodyear announced Monday that it is investing half a billion dollars in one of its Canadian plants in a bid to boost annual production and supply electric vehicle manufacturers.
The C$575 million project will make it possible to manufacture two million tires per year and add 200 jobs to the 1,000 already in place at its Napanee plant in Ontario.
“We want the plant to evolve to meet the more diverse needs of the electric vehicle market,” Goodyear President and CEO Mark Stewart said at a news conference.
Different tires are needed for electric vehicles because they weigh more than those used for gasoline vehicles.
The plant expansion is supported by Ottawa and the province of Ontario, which together injected 64 million Canadian dollars.
Canadian Prime Minister Justin Trudeau has touted the country’s “abundance of clean energy” and reiterated his commitment to “taking serious action” to combat climate change.
His Liberal government is seeking to attract investment in the auto sector’s transition to electric vehicles, leading to the injection of C$46 billion over the past four years from companies specializing in the manufacture of electric vehicles.
Canada’s strategy – which has lured Honda, Volkswagen, Stellantis and others with subsidies – follows that of the neighbouring United States, whose Inflation Reduction Act has provided a series of incentives for green industry.