Michelin receives $3.27 million government contract for Waterville plant

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The Michelin plant in Waterville. 

West Nova MP Greg Kerr announced a significant subcontract that will play an important role in providing the Canadian Army with a new and improved fleet of Light Armoured Vehicles III.   

Michelin's Waterville plant, in association with Hutchinson Industries, Inc. has been awarded this $3.27 million subcontract by General Dynamics Land Systems – Canada in support of the Light Armoured Vehicle III Upgrade Project.  

“Today’s announcement demonstrates our continued support of our brave men and women in uniform and skilled Canadian workers – including right here in Waterville,” said Kerr. “Our investments will provide our troops with the modern equipment they need to conduct their missions safely and effectively for many decades to come.”  

The Light Armoured Vehicle III Upgrade Project, one of four Family of Land Combat Vehicle projects announced by the Government of Canada, will capitalize on existing and evolving technology to improve the protection, mobility and lethality of the Light Armoured Vehicle III fleet.

The project will modernize a portion of the existing fleet to ensure it remains a highly protected, operationally mobile and tactically agile combat vehicle that will remain the backbone of domestic and expeditionary task forces, extending the life span of the Light Armoured Vehicle III to 2035.  

This subcontract is a result of the Government of Canada’s $1.064 billion contract award to General Dynamics Land Systems – Canada in October 2011 for the delivery of 550 upgraded Light Armoured Vehicles and is a prime example of the high quality work Canadian industry is carrying out as a result of the Government of Canada's Industrial and Regional Benefits policy.

Canada’s agreement with General Dynamics commits the company to re-invest 100 per cent of the contract value in business activities in the Canadian economy, further expanding the economic benefits of this procurement in regions across the country.  

“Our government is leveraging large-scale investments and positioning Canadian industry to take advantage of not only current but emerging value chains,” said Christian Paradis, Minister of Industry. “The Industrial and Regional Benefits Policy provides Canadian companies with access to lucrative business opportunities, ensuring that 100 per cent of contracts result in direct and indirect business activity in Canada.”  

Michelin will be providing 3,500 395/85 R20 XML tires for the Light Armoured Vehicle III Upgrade Project, which is designed to enhance the mobility of the vehicle and perform in a variety of terrains and battlefield conditions. The subcontract is being placed through Hutchinson Industries, Inc. who are providing the wheel assemblies for the Light Armoured Vehicle III Upgrade Project.  

“Canadian soldiers need the best tools for the job and deserve the best vehicle we can give them,” said Danny Deep, vice president of General Dynamics. “The LAV III Upgrade Project will enhance the LAV III fleet's survivability, operational capability and long-term performance. With our Canadian design and manufacturing base and over 500 suppliers located in every province of Canada, we are proud to say that the best armoured vehicles in the world are made in Canada.”

Organizations: General Dynamics Land Systems, Hutchinson Industries, Canadian Army Canadian Armed Forces Atlantic Canada Opportunities Agency La Francophonie Light Armoured Vehicles Industrial and Regional Benefits Policy General Dynamics Land Systems-Canada

Geographic location: Canada, Waterville

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