Michelin will close the Scottish tire factory

- Jan 10, 2019-

Recently, the Michelin Group revealed that its passenger tire factory in DUNDEE, the eastern port city of Scotland, is scheduled to close in mid-2020, which will result in 845 employees losing their jobs.

Michelin said that the 47-year-old factory produces smaller tires. Due to the declining market demand in recent years and the increasing number of low-cost imported products from Asia, the status of the factory has become very rampant. Transformation (production of other types of tires) is not financially viable." It is reported that the Dundee plant only produces passenger tires with rim diameters of 16 inches and smaller, with a rated daily capacity of 25,000.

The Dundee plant is Michelin's last tire production base in the UK. It also has a factory in Stoke, Trent, England, which produces truck retread tires, tire molds and steel cords. Just 17 months ago, Michelin also announced plans to invest $21 million to upgrade the Dundee plant to enable it to produce larger tires and reduce the impact on the local environment. The company's budget for 2015 is $106 million and plans to increase production by 30% by 2020. In April 2018, Michelin also closed a truck tire factory in Ballymena, Northern Ireland.

Michelin said that the market for small tires produced at the Dundee plant "has undergone permanent changes", prompting the company to resolve these structural changes. It is understood that the company has no plans to transfer its production capacity to other Michelin plants.