Michelin
In early March an innovative, cutting edge tire will be unveiled in North America. The Michelin X One will replace a truck's traditional dual tires with a single wide tire, creating fuel and energy savings. It will roll off the production line in the company’s plant in Waterville, Nova Scotia. The Waterville project will double Michelin's North American capacity to produce X One tires. Michelin's Bridgewater plant is getting a $36-million expansion and modernization of its steel cord products division. These projects are just two in a series of accomplishments -- in the relationship between one of the world's largest tire manufacturers and Nova Scotia.
Michelin's North American presence was launched in 1971 in Pictou County. Last year, the company celebrated its 35th anniversary of manufacturing in Nova Scotia. "I think everybody's very proud of that," says George Sutherland, general counsel for Michelin North America Canada Inc. "There were a lot of challenges over that period. When you see that the company has continued to grow and invest in Nova Scotia, and when you see the success of the operations and the strength of the workforce, you can't help but feel very good about it."
Another cause for celebration took place in August, when Michelin's three Nova Scotia plants -- Bridgewater, Pictou County, and Waterville -- collectively manufactured their 200-millionth tire. The plants produce more than 300 types of tires for cars, light trucks, SUVs, and large industrial machines. About 75 per cent of the products are exported to the United States. Such successes require resourceful and innovative employees. "Say you've got the very best, technologically advanced product. Why is that It's because an employee had a good idea," Sutherland says. Nova Scotian employees have taken leadership roles. They have been called upon to share their knowledge with Michelin teams internationally. "We are now advancing in other countries -- Hungary, Russia, Thailand, and so forth. We have Nova Scotian employees sharing their years of experience and expertise in helping these new teams develop their operations," Sutherland says. Michelin has about 3,500 employees in the province, most of whom have been with the company for more than 20 years.
Michelin's strong relationship with Nova Scotia workers has meant a staff turnover of less than two per cent per year. Sutherland, who has been with Michelin for 28 years, says "this is a competitive advantage for being in Nova Scotia." Nearly half of Michelin's Nova Scotia workforce is eligible to retire in the next five years, so the company is working with the Nova Scotia Community College to prepare for the future. Sutherland points out the province has a very strong university system. Last August, Dalhousie University and Michelin announced joint research projects in fire prevention, bio-diesel fuel and energy management. Sutherland says Michelin has "an excellent relationship with the province.
"I would say there's a very positive business environment in Nova Scotia, and the province recognizes the importance of economic development." Nova Scotia has participated in a number of plant developments over the years. Last January, the province made a $10.8-million commitment towards Michelin's $92-million investment in the Waterville plant's X One tire project. "The incentives the province has offered can make the difference in successful project development, because they help us make a better business case within the Michelin organization," Sutherland says.
It has been well worth it. Since 1997, Michelin has contributed more than $585 million to the province in capital investments alone. Volunteer efforts of Michelin employees and the company's participation have also helped strengthen the communities. This year will mark the 20th anniversary of the company's involvement with Nova Scotia Special Olympics. The event fits well with the values of the company, including "helping people develop their potential," Sutherland says. A more recent example of community involvement was a $35,000 sponsorship for the Discovery Centre in Halifax as part of Michelin's 35th anniversary year in Nova Scotia.
"The Discovery Centre gets kids really excited to learn about technology and innovation, which are basically footholds to everything that we do at Michelin -- to be innovative, to think outside the box and to see where it can take us," says Sheri Somerville, corporate communications manager for Michelin North America Canada Inc. Lifestyle is also a component of the successful Nova Scotia-Michelin relationship. Somerville's career path has taken her across the country and she's glad to be living and working in Nova Scotia. Her daily commute to work in Toronto ate up more than two hours of her day. "I live near the water. I have great jogging trails to go on." she says. "To me it's incomparable. It's the type of life I want to live."
