Efforts to save tyre production at the Michelin plant in Dundee have failed after finance secretary Derek Mackay confirmed manufacturing will end in 2020.
The firm unveiled bombshell plans to close the factory last month prompting the formation of an action group involving Mr Mackay, who said the offer of fresh ministerial support to help maintain tyre production was not enough.
READ MORE: Betrayal as Michelin announces closure of Dundee plant
“Michelin has confirmed that, despite the offers of further Scottish Government support, structural market changes mean that the continued manufacturing of tyres at the Dundee site is not viable and that tyre production will therefore cease in 2020,” Mr Mackay said after a meeting of the action group in the city.
The tyre giant has also appointed Jerome Monsaingeon as the company’s project leader for the partnership on the future of the Michelin site in Dundee.
Michelin factory manager John Reid said he believed it “is a really positive outcome.”
He said: “Everyone involved in this partnership will work extremely hard to transform the Michelin site.
“We will channel our shared values and priorities to create a significant number of jobs and we will develop a facility that will benefit the economy of Dundee and beyond.
“In parallel with this work, Michelin will be supporting employees and doing everything we can to help them find the best outcomes possible.”
The action group has been led by Dundee City Council leader John Alexander and Steve Dunlop, chief executive of Scottish Enterprise, who compiled the Scottish Government’s proposition to Michelin and will lead the work to transform the future of the Dundee site. Both Mr Mackay and the Secretary of State for Scotland David Mundell were also involved, as well as Mr Reid.
Dundee City Council leader John Alexander said there could still be a “new and exciting future” for the plant.
He added: “We are ready to roll up our sleeves and get on with the business of putting flesh on the bones of this commitment, always with the understanding that there are still significant challenges to be overcome.”