Mark Stewart, CEO and president of Goodyear, left, Prime Minister Justin Trudeau, and Ontario Premier Doug Ford arrive for an announcement at the Goodyear plant in Napanee, Ont., on Aug. 12.Justin Tang/The Canadian Press
Goodyear Canada Inc. has announced a $575-million project to modernize and expand its plant in Southeastern Ontario, which includes making specialized electric-vehicle tires, with federal and provincial government funding of up to $64-million.
The company said Monday that the investment will create an “energy-efficient, end-to-end manufacturing process” and increase its production capacity to two million tires a year, including for EVs and all-terrain vehicles. Construction on the plant began earlier this year and is expected to be completed by mid-2027.
Prime Minister Justin Trudeau and Ontario Premier Doug Ford, who have worked jointly to secure billions of dollars in investments in the EV sector, were on hand Monday to make the announcement alongside company executives in Napanee, Ont., about 45 minutes west of Kingston. The project will be developed on the same land as Goodyear Canada’s existing facility in Napanee.
The governments said the investment will create 200 new skilled manufacturing jobs by 2027 for a total of more than 1,000 jobs in Napanee. Both Mr. Trudeau and Mr. Ford cited Bloomberg’s ranking for global lithium-ion battery supply chains, which earlier this year saw Canada surpass China for the top spot for building one.
“Our single greatest competitive advantage is Canadians themselves. Companies from around the world are trying to connect with the reliable, educated, ambitious, serious work force that we have right across the country,” Mr. Trudeau said.
Mr. Ford said the expanded plant will be a “huge boost” to the province’s growing auto and EV industry, and reflects how Ontario has become “an economic powerhouse in North America.”
The federal and Ontario governments said the project will get the Goodyear Napanee plant to net-zero emissions by 2040, helping achieve Canada’s goal of a net-zero economy by 2050.
Mark Stewart, global chief executive officer and president of Goodyear, said the announcement reinforces the company’s long-term commitment to Canada.
“We’re going to continue our focus and our commitment on the green and sustainable environment right here in Napanee and as well across the world in both our plants and in our products,” he said.
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EV tires are heavier, have added resistance and are quieter compared with regular ones. They are also made with sustainable materials.
Goodyear is set to receive federal funding of up to $44.3-million from the Strategic Innovation Fund, and $20-million from the provincial government through Invest Ontario. The province said the money will support key components of the project, including the implementation of innovative technologies and skills training programs.
Over the past few years, Ottawa, alongside the governments of Ontario and Quebec, have promised about $50-billion in subsidies to encourage foreign automakers, including Volkswagen, Stellantis and Honda, to build EV and battery manufacturing plants in the country.
But there have also been setbacks: Belgian company Umicore announced last month that it was pumping the brakes on a planned $2.8-billion battery-materials manufacturing plant in Ontario and commenced a review of its expansion plans in North America. And earlier this spring, Ford Motor Co. said it will delay by two years the launch of EVs at its plant in Oakville, Ont., as sales of zero-emissions cars falter.
Mr. Trudeau on Monday defended his government’s investments, saying Canada has made the “strategic decision” to be a leader in EV supply chains.
“This is a nascent technology, a nascent industry. There are going to be challenges along the way,” he said. “We know that electric vehicles are going to be essential for the future.”
Last week, Conservative Leader Pierre Poilievre said a future government under his party would slap massive import tariffs on Chinese-made EVs and a host of other products in a bid to protect Canadian jobs.
The Liberal government just completed the required consultations to impose tariffs on Chinese-made EVs and launched an additional consultation last Friday that could expand that to additional industries.
Asked about why Canada hasn’t matched U.S. tariffs on Chinese-made EVs, Mr. Trudeau on Monday said Canada will “continue to stand up” for the auto sector and will use all necessary tools to drive a cleaner economy.