Michelin North America’s BFGoodrich brand is planning to invest US$100 million at its Fort Wayne tyre plant in Woodburn, Indiana in the US.
According to a filing with Allen County government, the 55-year-old plant — the largest single taxpayer in the East Allen County Schools District — plans to put US$20 million toward upgrading its process and equipment; US$23.5 million toward improving its production and efficiency; US$18.5 million toward improving its quality verification; and US$38 million toward tooling and moulds. The investment will not produce new jobs, according to the filing. However, it will protect its current 1,600 employees working there.
Allen County Council said it will consider a request for tax relief related to the plans. Michelin-owned BFGoodrich will request a tax savings of US$3.5 million in personal property taxes over 10 years. It would pay US$2.34 million in taxes over the period, if approved.
According to a statement issued by BFGoodrich: “Michelin is considering a potential investment in its BFGoodrich Fort Wayne plant over the next five years. This prospective investment would support Michelin’s ambition to grow the BFGoodrich brand in the US and around the world. At this time, no final decisions have been made.”
Allen County Commissioner Nelson Peters said the investment shows the brand’s commitment to the region and ensures the plant’s longevity in the community.
This is not the first major investment BFGoodrich has made at its Fort Wayne plant. The tyre plant announced a US$50 million investment in 2002 in exchange for incentives from the county which, company officials said, were needed to save most of the 1,200 jobs there at the time.
In 2008, the company announced it would invest US$53 million in new equipment that was expected to create 60 jobs. The county also granted tax breaks in 2010 in return for US$77 million in replacements for decades-old equipment. At the time the plant had about 1,400 employees — the highest since its work force peaked at 1,800 in the early 1980s.
The plant had about US$250 million in sales in 2015, after reporting US$278 million in sales in 2014 and US$263 million in 2013. (RJA)