Fashion

Michelin to close Dundee factory and slash 845 jobs

Michelin is cutting 845 jobs at its Dundee plant ( AFP/Getty Images )

Tyre maker Michelin is closing its Dundee factory and cutting 845 jobs, the company announced on Tuesday.

The group said it will shut the plant by mid-2020, because of a decline in demand for the kind of tyres it manufactures, and competition from Asia.

Michelin’s Dundee site, which has been open since 1971, specialises in manufacturing 16-inch and smaller tyres for cars.

The company said the factory had faced “serious difficulties” in recent years because of a “profound transformation” in the number of cars on the market, and due to an “accelerated shift” towards “low-cost, entry-level products” from Asia.

Michelin said it had invested €70m (£62m) in the Dundee site in recent years, but added: “Despite the group's continuous efforts, and the factory employees’ dedication to making the site economically sustainable through the implementation of several action plans... the accelerated market transformation has made the plant unsuitable and its conversion is not financially viable.”

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Michelin said it will begin a consultation process with employees within the next two weeks.

As part of its support programme, Michelin said it will “propose a comprehensive plan to assist the employees concerned to start a new career as quickly as possible”.

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