Dundee, Scotland – French tire maker Michelin has warned of potential job cuts at its tire production plant in Dundee amid "extremely challenging trading conditions".
In a 10-Sept statement, Michelin said it expected the plant’s output to fall “significantly below capacity” from 6.2 million units in 2017 to a maximum of 5.4 million per year over the next three years.
The company has cited an “influx of cheap tires from Asia and falling demand for smaller premium tires” for the decline in output.
Michelin said it was working with employees and unions to address market challenges.
"We will explore all options to maximise the efficiency of the plant, and those options could include restructuring working patterns and reducing headcount,” the company noted.
Michelin manufactures passenger car and light truck tires at the Dundee plant.
In a major restructuring announcement in 2015, Michelin said it would invest €69 million to increase production by 30% by 2020.
The investment included the installation of new machinery, enabling the production of larger tires which are a growing segment of the market. It also envisaged a new on-site warehouse to accommodate the rise in production.