Michelin handed £4.5m funding boost for Dundee factory improvements

Tyre manufacturers Michelin are getting £4.5 million of public cash as part of a £16.5 million investment in the firm's Dundee factory, Nicola Sturgeon has announced.

The funds will pay for a series of improvements at the site, including bringing in new technology aimed at bringing about a substantial drop in environmentally-hazardous CO2 emissions.

The firm is committing £12 million to the project, which will help meet the increasing demand for larger tyres, after the firm chose Dundee as the first place to introduce a new manufacturing technology on an industrial scale.

Government agency Scottish Enterprise is also contributing a £4.5 million environmental protection grant.

The funding package was revealed by the First Minister as she visited the factory, which employs 850 workers.

Ms Sturgeon said: “Michelin is a global leader in developing the latest technology and this investment in making the next generation of fuel-efficient tyres is another great example of a highly-innovative company.

“This commitment and investment in the Dundee site will support the 850 fantastic, skilled workers here to remain at the cutting-edge of their industry and help the worldwide drive to the low carbon economy.

“Michelin's investment in Scotland is testament to our thriving manufacturing industry and its position as a key growth sector for the economy.

“Their continued commitment is proof of the skill and value of the Scottish workforce.”

Adrian Gillespie, managing director of growth companies, innovation and infrastructure at Scottish Enterprise, said it was fantastic news'' Michelin had chosen the Dundee site to be the first industrial-scale implementation of new technology.

He added this would help make the factory “even more efficient, growing the range of tyres it is capable of manufacturing and helping to secure its future growth”.

Michelin factory manager John Reid said: “We're delighted the First Minister is here to announce this significant investment.

“It represents a very important step forward for the factory and forms part of a much bigger investment to transform the plant, none of which could we have achieved without the fantastic support of Scottish Enterprise.