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Michelin plant in Dundee to close with loss of hundreds of jobs | UK | News

Michelin plant in Dundee to close with loss of hundreds of jobs | UK | News 1041492 1

Michelin, which has been in the city since 1971, recently spoke of “challenging conditions” and warned in September that they intended to reduce capacity over a three-year period.

The Unite union, which represents much of the workforce, blamed the situation on cheap foreign tyre imports.

Just three years ago Michelin announced a £50million investment in machinery at the factory.

In a statement issued last night, the French company said: “Despite the group’s continuous efforts, and the factory employees’ dedication to making the site economically sustainable through the implementation of several action plans – €70million (£61million) has been invested in recent years to modernise the site – the accelerated market transformation has made the plant unsuitable and its conversion is not financially viable.

“Against this backdrop, the Michelin group has had to announce its intention to employees to close the Dundee factory by mid 2020. The priority now is to provide the 845 employees of the factory with the most effective support possible to enable them to face the consequences of this difficult decision.”

Unite’s Scottish Secretary Pat Rafferty said: “We have been aware of the challenging market situation facing the Michelin Group. This has been primarily due to the cheap foreign imports from Asia and as a result falling demand for premium tyres in smaller dimensions, which the Dundee factory specialises in producing.”

He added: “The workforce can be assured Unite will fight tooth and nail to save our factory, we will leave no stone unturned to keep this factory open. Unite will work day and night to ensure that all options remain on the table.”

Scottish Labour leader Richard Leonard said: “This is devastating News for the Michelin workforce and their families, the city of -Dundee and the wider Tayside community.

“It is now key that the Scottish Government does everything it possibly can to keep the factory open and protect jobs.”

Economy Secretary Derek Mackay said: “This will be devastating news not just for those who work at the Michelin plant, but their families and the whole of the city of Dundee.

“My immediate priority is on trying to find a sustainable future for the site that will protect jobs. 

“I will be in Dundee on Tuesday and hope to meet with representatives of the workforce, the city council and the management team to discuss whether there are viable options for the future of this site.

“I know the workforce and unions have gone to immense lengths to make the plant as competitive as possible to secure its future, and we will leave no stone -unturned in trying to protect the future of the Dundee site.”

Scottish Enterprise allocated £4.5million into new production machinery at the factory in addition to a £12million investment by Michelin to support increased demand for larger tyres last year.

Source : EXPRESS

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