Tire maker Goodyear to invest C$575 million to upgrade Canada plant

OTTAWA (Reuters) -The Canadian unit of Goodyear Tire & Rubber Co will invest over C$575 million ($418.4 million) to upgrade its plant in Napanee, Ontario, Prime Minister Justin Trudeau said on Monday.

The project to modernize and expand the plant will create 200 new jobs by 2027 and secure 1,000 jobs in Napanee, the prime minister's office said in a statement.

The federal government will provide C$44.3 million in funding for the expansion project, while the Ontario provincial government will contribute C$20 million to support key components of the project, according to the statement.

The investment is the latest in Canada's efforts to woo companies involved in all levels of the electric vehicle supply chain to safeguard the future of its manufacturing heartland in Ontario as the world seeks to cut carbon emissions.

"It's another vote of confidence in Canada's auto sector workers," Trudeau said.

Goodyear's project is expected to increase its production capacity, including of EV and all-terrain tires, and get its Napanee plant to net-zero emissions by 2040.

($1 = 1.3742 Canadian dollars)

(Reporting by Ismail Shakil and Promit Mukherjee in Ottawa; editing by Jonathan Oatis)