News Release Archive

ECONOMIC DEVELOPMENT/TOURISM--Michelin to Invest $150 Million
Michelin plans to invest $150 million to upgrade and expand
production at its three Nova Scotia plants.

These new investments will strengthen Michelin's competitive
position and help to ensure Nova Scotia benefits from the
company's presence well into the next century.

The investments will be used to modernize equipment, refocus
product lines and expand overall manufacturing capacity during
the next three to four years, ensuring that Nova Scotian plants
remain a major source of new products and exports for North
American and global markets. 

"Today's announcement is a tribute to the dedicated efforts of
our employees and reflects Michelin's confidence in the
communities in which we operate and the province of Nova Scotia,"
said George Sutherland, general counsel for Michelin North
America (Canada) Inc. Sutherland made the announcement with
Premier Russell MacLellan in Halifax today. 

"Nova Scotian workers are the main reason that companies like
Michelin continue to invest here," said the premier. "They have
the edge because of their skill and dedication. Investing in our
people and in training is key to ensuring this province remains
competitive and even ahead of the pack.

"We're investing in our people so they can take advantage of new
opportunities within the company." 

To help secure the investment, the province will contribute $2
million in employee training and forgive part of a loan that
Michelin has with the province.

"Our investment is good business for this province," said Manning
MacDonald, Minister of Economic Development and Tourism. "We get
back some $16 million each year in company payroll taxes alone,
so any investment in Michelin has paid off for the province again
and again. Michelin's investment is more proof of the private
sector's confidence in our people and our province."

Michelin currently employs about 3,500 Nova Scotians who produce
tires for passenger cars, light trucks and trucks and
earthmovers. About three-quarters of the production of the three
plants is exported.

The investment announced today will direct $68 million to its
Pictou County facility. The plant will become Michelin's major
North American supplier of Pilot tires, a new line of
ultra-high-performance passenger car tires for such vehicles as
the Porche 911, the Dodge Viper and the Oldsmobile Aurora. The
plant will also increase production of tires for sport utility
light trucks.

Other projects for the Pictou County plant include increasing its
rubber-making capacity and improving its flexibility to make
different dimensions of tires. To facilitate these expansions,
Pictou County's current truck tire production will transfer to
the Waterville plant. That will mean a net reduction of 35 truck
tire employees at Pictou County. It's expected these employees
will be reassigned to other positions within the plant.

Another $66 million is intended for the Waterville facility,
which specializes in tires for trucks and earthmovers.
Seventy-five positions will be created at this plant as truck
tire production transfers from the Pictou County facility. In
addition, 25 positions will be created as Waterville increases
production of earthmover tires. More than half of the 100 new
positions are expected by the third quarter of 1998 with the rest
by mid-1999.

The remainder of the investment is intended for the Bridgewater
plant, which will expand and specialize in complex high-value
steel cord. As a result, 15 positions will be created at this
facility by mid-1998. Production of tires for passenger cars and
light trucks will continue at full capacity.

The projects will create a net total of 80 positions. It's
expected these will be filled through hiring or reassignment of
current employees.

Michelin first established in Nova Scotia in 1971 with plants in
Pictou County and Bridgewater. The Waterville plant was added in

In 1988, the company underwent a significant expansion, investing
more than $500 million. Nova Scotia approved a $48.3-million loan
for this expansion, with repayment scheduled to begin in 2004.
The province will forgive $25 million of that loan. It will also
contribute $2 million in training after the company has reached
the $75-million investment level for the latest projects.

Michelin has invested over $2 billion in capital and paid over
$2.5 billion in direct wages and salaries since coming to the

"We established our facilities in Nova Scotia for the long haul,
and as we look to the future, we are optimistic. Nova Scotia is
world class," said Mr. Sutherland. "We plan to maintain our
manufacturing capacity and compete in the global market."

Contact: Angela Poirier
         Economic Development and Tourism

         Norma Nixon

ngr                 Nov. 12, 1997                 9:10 a.m.