Dundee Michelin factory to close in 2020, leading to loss of 845 jobs

Michelin will close its Dundee tyre factory by mid-2020.

The firm stated that the site has faced "serious difficulties'' in recent years.

The plant currently employs around 850 people.

A statement posted on its website on Monday evening 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 - 70 million euro 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 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."

Michelin said it will implement a personalised support programme for each of the factory's employees.

It said it will also work with "local stakeholders'' to help create 845 new jobs in the area.

It said it will begin a consultation with employees and trade unions on the closure plans over the next fortnight.

John Reid, factory manager at Michelin Dundee, said: "I understand that these proposals will come as a huge blow to our employees and to the city of Dundee as a whole.

"It's also a very personal blow for me.

"I have been part of Michelin Dundee for 26 years and I am very proud of the hard work and dedication shown by the team here.

"This factory has faced incredibly tough challenges before and we have come through thanks to the hard work and flexibility of our people and the union, and the backing of the Michelin Group.

"However, the market for the smaller tyres we make has changed dramatically and permanently, and the company has to address these structural changes.

"The proposals are nothing to do with the UK's decision to leave the EU, and they are absolutely not a reflection of the performance of the plant or the people who have worked so hard here for so many years.

"I am totally committed to supporting our employees throughout the whole process and beyond, and I know that commitment is shared by the Michelin Group."

Unite Scottish Secretary Pat Rafferty has said that closure of the plant would be a "hammer-blow'' for the city.

The Scottish Government's 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 and I will leave no stone unturned.

"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."