Inergy Automotive Systems is to close its blow moulded fuel tank operations in Blenheim, Canada, and spend $8.2m (€5.5m) to consolidate manufacturing at its US facility at Adrian, Michigan.

The state of Michigan announced Inergy’s plans in a news release, noting that it will aid the company’s move with a $1.3m (€870,000) tax credit.

Inergy, the joint venture of Solvay and Plastic Omnium, expects to add 189 jobs at the Adrian plant, which has produced more than 10 million fuel tanks to date.

About 24% of Inergy’s €1.2bn in annual sales is in North America. The company also has North American plants in Anderson, South Carolina, and Ramos Arizpe, Mexico.