Last week, CTNA announced a three-year, $70 million to $100 million capital investment program for the facility – the only dedicated and operating tire plant CTNA owns in North America now.
Alan Hippe, CTNA president and CEO, said the expansion plans include at least a new warehouse and a number of unnamed projects.
“Seven months ago, I made a promise to all of you that if Mt. Vernon employees and the Mt. Vernon community would invest in CTNA’s future, the company would invest in theirs,” said Hippe. “Today, I am happy to stand here – as I did in February when we broke ground for the tandem mixer – and tell you that CTNA has delivered on that promise and that we plan to continue making investments in the Mt. Vernon plant.”
This past January, CTNA cut wages for Mt. Vernon workers by 10% and increased their contribution for medical insurance coverage, reducing plant costs by some 23%, according to reports. At the same time, Hippe said the company would invest in the plant, including a new tandem mixer that is currently being installed there.
“Make no mistake about it: I would not keep coming here, and CTNA would not invest its capital dollars here, if we didn’t see a long, long future for the Mt. Vernon facility. We have a lot of hard work ahead of us, but I believe that if we continue to work together, the Mt. Vernon plant will have a bright and prosperous future.”
The 250,000-square foot warehouse expansion will allow for an additional 150,000 tires, he said, and other 2006 projects include upgraded equipment across the plant.
Hippe also said CTNA has launched a three-year plan to “increase product offerings and improve product mix in the light truck and high performance tire market sectors.” He said CTNA will introduce “more than 500 new or expanded tire products” in that timeframe.
