Michelin to close its Dundee site in UK, Secretary says it would be devastating
Staff Writer |
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 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.
Article continues below
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.
In line with its principles, the Group will implement a personalised support programme 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 assist the employees concerned to start a new career as quickly as possible. This plan will include intensive support to find a new job, relocation assistance, and tailor-made programmes including skills retraining.
Michelin Development, the Group's entity dedicated to local economic development in the areas in which Michelin has operations, will also be working with local stakeholders to help create 845 new jobs.
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.
Responding to an announcement by Michelin on the closure of their Dundee site in 2020, 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.
"I was informed at the end of last week of the possibility of closure and immediately sought discussions with the senior management team at Michelin.
"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. ■