Edinburgh, UK – Michelin has confirmed its decision to end its tire-manufacturing operation in Dundee by 2020, while committing to help establish major new activities at the Scottish site.
Under a deal announced 30 Nov by the Scottish government, the French tire maker will work with national and local government agencies and other partners to develop the site.
An agreement to that effect is to be signed before the end of the year by the Scottish Government, working group partners and Michelin group management.
However, in meetings last week between Scottish government officials and senior Michelin executives, the French group stuck by its decision, announced 5 Nov, to close the 845-employee tire plant by mid-2020.
“Despite the offers of further Scottish Government support, structural market changes mean that the continued manufacturing of tires at the Dundee site is not viable,” said Derek Mackay, Scotland’s economy secretary.
The goal now is to transform the site into a location for manufacturing, re-manufacturing, recycling and low-carbon transport, according to McKay.
While noting that jobs would be lost with the closure of the tire plant, trade union Unite welcomed the joint proposals to develop the Michelin site on the basis that it will remain a significant manufacturing site.
“There are some exciting proposals which will ensure the site retains a manufacturing base and well-paid jobs will be created based on future technologies,” said Bob MacGregor, Unite regional industrial officer.
Scottish Enterprise chief executive Steve Dunlop will lead the transformation project. Michelin’s input will be led by Jerome Monsaingeon, a former MD of its subsidiaries in Europe and the Far East and most recently of its tire retail unit ATS Euromaster.