Michelin has announced it is to close its manufacturing plant in Dundee in Scotland in the UK. The company says the site, opened in 1971 and which manufactures 16-inch and smaller tyres for cars, has faced serious difficulties in recent years due to a ‘profound transformation of the car parc, resulting in a structural decline in the demand for premium tyres of 16-inches and smaller’, and ‘an accelerated shift in the 16-inch and smaller tyre offer towards low-cost, entry-level products from Asia’.
In a statement, Michelin said that despite its 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’.
The factory will close by mid-2020 with 845 employees to lose their jobs. Michelin says it will implement a personalised support programme for each of the factory’s employees with enhanced redundancy packages and early retirement measures for employees at the end of their career, and a plan to assist employees looking to start a new career that will include intensive support to find a new job, relocation assistance, and programs including skills retraining.