Partners in industry: ADA renews loan-lease equipment agreement with Michelin
Earlier this week the Ardmore Development authority voted to renew their longtime partnership with the Michelin tire plant. The partnership is a loan-lease agreement in which the ADA agrees to purchase manufacturing equipment that the plant will then lease back from the organization.
Mita Bates, president and CEO of the Ardmore Development Authority, said both parties entered into the agreement in 2004 in order to help the plant stay on top of technological developments.
“We actually purchase the tire manufacturing equipment and then lease it back to Michelin,” Bates said. “This allows the plant to continue to update it’s technology, and in the 17 years we’ve been doing this the technology has changed pretty significantly. When it comes to manufacturing, it’s all about how efficient we can be in our process, and in the case of Michelin, the global tire market is incredibly competitive. So it’s very important that we keep our plant modernized and up to date so they can remain competitive.
Bates said each lease agreement lasts for 15 years, and once the lease is up the ADA will be entirely reimbursed for the cost of the equipment. She believes the partnership to be beneficial not only to Michelin but the entire community as a whole
“This is a great way for us to support our local industry and ensure their continued growth, expansion and prosperity,” Bates said. “Michelin is one of the largest employers in the region, and in addition to all of the people who already work there, they are actually in growth mode right now and are looking to hire new employees.”
Bates said the agreement is a good example of the many partnerships the ADA has within the community.
“This is just one way that we partner wit local business and industry to make things happen,” Bates said.