Tyre manufacturer Michelin is getting £4.5 million of public cash as part of a £16.5m investment in its Dundee factory, the First Minister has announced.
The funds will pay for a series of improvements at the site, including bringing in new technology aimed at bringing about a substantial drop in CO2 emissions.
• READ MORE: Michelin to invest €69m in Dundee tyre plant
Michelin is committing £12m to the project, which will help meet the increasing demand for larger tyres, after the firm chose Dundee as the first place to introduce a new manufacturing technology on an industrial scale.
Scottish Enterprise is also contributing a £4.5m environmental protection grant.
The funding package was revealed by First Minister Nicola Sturgeon as she visited the factory, which employs 850 workers.
She said: “Michelin is a global leader in developing the latest technology and this investment in making the next generation of fuel-efficient tyres is another great example of a highly-innovative company.
“This commitment and investment in the Dundee site will support the 850 fantastic, skilled workers here to remain at the cutting-edge of their industry and help the worldwide drive to the low-carbon economy.
“Michelin’s investment in Scotland is testament to our thriving manufacturing industry and its position as a key growth sector for the economy.
“Their continued commitment is proof of the skill and value of the Scottish workforce.”
• READ MORE: Blackcircles bought by Michelin for £50m
Adrian Gillespie, managing director of growth companies, innovation and infrastructure at Scottish Enterprise, said it was “fantastic news” that Michelin had chosen the Dundee site to be the first industrial-scale implementation of new technology.
He added this would help make the factory “even more efficient, growing the range of tyres it is capable of manufacturing and helping to secure its future growth”.
Michelin factory manager John Reid said: “We’re delighted the First Minister is here to announce this significant investment.
“It represents a very important step forward for the factory and forms part of a much bigger investment to transform the plant, none of which could we have achieved without the fantastic support of Scottish Enterprise.”