Despite efforts to transform the factory, Michelin is closing its Dundee plant in Scotland, which opened in 1971 and exclusively manufactures 16in and smaller tires for cars. The facility has faced serious difficulties in recent years due to a profound transformation of the car parc, resulting in a decline in demand for premium tires of 16in, and motorists purchasing low-cost, entry-level products from Asia.
Although employees have been working to make the site more economically sustainable through the implementation of several action plans – including a €70m investment to modernize the site – the plant has been deemed unsuitable and its conversion is not financially viable.
Against this backdrop, the Michelin Group will close the 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 will implement a personalized support program for each of the factory’s employees. In addition to enhanced redundancy packages and early retirement measures for employees at the end of their career, Michelin will propose a comprehensive plan to help the employees concerned start a new career as quickly as possible. This plan will include intensive support to find a new job, relocation assistance, and tailor-made programs including skills retraining.
Michelin Development, the group’s entity dedicated to local economic development, will also be working with stakeholders to help create 845 new jobs in the area.
In accordance with UK legislation, Michelin will begin a consultation process with employees, employee representatives and the trade union on the closure project, and on social support measures in the next two weeks.