Goodyear expanding Canada plant to make 2 million tires annually

Goodyear Tire & Rubber Co. said it will spend C$575 million ($418 million U.S.) to modernize and expand its manufacturing plant in Napanee, Ont., as the tire supplier looks to boost production capacity at the site in eastern Ontario to two million tires per year. 

The plant will provide additional capacity for original equipment and replacement all-terrain tires, as well as products designed specially for electric vehicles.

Prime Minister Justin Trudeau and Ontario Premier Doug Ford joined other government and top company officials in the town, about 31 miles west of Kingston Aug. 12 to announce the project that will add hundreds of thousands of square feet of new manufacturing space to the plant. 

Goodyear CEO Mark Stewart, who took the helm in January after a stint as COO of Stellantis North America, said the investment will allow Goodyear’s Napanee site to build the next generation of tires. 

“[It] 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,” he said in a release. 

Trudeau said the investment is “another vote of confidence in Canada’s auto sector workers.” 

The expansion will secure about 800 existing jobs at the plant and create 200 new positions when the upgraded site is up and running in 2027. The construction work, which started earlier this year, will see several hundred thousand square-feet of floorspace added to the plant and the installation of new equipment to build both all-terrain tires and those designed for electric vehicles.

Goodyear’s sole plant in Ontario began producing tires in 1990.

Ontario Minister of Economic Development, Job Creation and Trade Vic Fedeli said the investment further affirms Ontario’s place as a North American EV leader, with more than C$43 billion in new auto investments over the past four years.

The federal and provincial governments will support the company spending by jointly picking up roughly 10 percent of project costs. Ottawa committed C$44.3 million to the expansion through the Strategic Innovation Fund, while Invest Ontario will kick in a further C$20 million. 

Several local governments have also backed the project through a C$2-million community involvement plan adopted late last year. 

The plant expansion is the second major automotive supply chain project announced for Ontario over the past year. 

Last fall, Belgium-based battery materials company Umicore’s announced plans to build an up to C$2.8 billion plant between Napanee and Kingston. While early construction got under way in October, the company has since halted work as it reassesses its global footprint amid slower-than expected EV sales. 

In addition to its facility in Napanee, Goodyear operates a tire-manufacturing plant in Medicine Hat, Alta., as well as a materials mixing centre in Valleyfield, Que.

Goodyear recently reported that its second quarter 2024 sales were $4.6 billion with tire unit volumes totaling 40.1 million. Second quarter 2024 net income was $85 million, compared to a net loss of $208 million a year ago.

The Akron, Ohio-based tire maker also announced recently that it had agreed to sell its off-the-road tire business to Yokohama Rubber Co. in a $905 million cash sale.

Tire Business, an affiliate of Automotive News, contributed to this report.