Michelin To Close Scottish Tyre Plant

- Nov 21, 2018-

Michelin has revealed it plans to close its tyre plant in the eastern port city of DUNDEE by mid-2020, a move that will put 845 workers out of work.

Michelin said the 47-year-old factory, which makes smaller tires, had become so embarrassed by falling demand in recent years and rising low-cost imports from Asia that it was "financially unviable to transition [to other types of tyres]".Dundee only makes tires with a rim diameter of 16 inches or less and is rated at 25,000 a day.

The Dundee plant is Michelin's last tyre production site in the UK.It has a factory in stoke-on-trent, England, making retread tyres, tyre moulds and steel cord for its trucks.And just 17 months ago, Michelin 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, which had a budget of $106 million in 2015, plans to increase production by 30 percent by 2020.In April 2018, Michelin also closed a truck tire factory in ballinina, Northern Ireland.

Michelin said the market for small tires produced at the Dundee plant "" has changed permanently" ", prompting the company to address those structural changes.It is understood that the company has no current plans to transfer its capacity to other Michelin plants.