Michelin has announced its decision to close its Dundee factory in the United Kingdom by mid-2020. The Dundee site, opened in 1971 and which exclusively manufactures 16-inch and smaller Michelin tyres for cars, has faced serious difficulties in recent years due to a profound transformation of the car parc, resulting in a structural decline in the demand for premium tyres of 16-inches and smaller and also due to an accelerated shift in the 16-inch and smaller tyre offer towards low-cost, entry-level products from Asia.
Michelin has invested €70 million in recent years to modernise the site. “Despite the Group’s continuous efforts, and the factory employees’ dedication to making the site economically sustainable through the implementation of several action plans, the accelerated market transformation has made the plant unsuitable and its conversion is not financially viable,” the company says in a Press release.
Michelin’s truck tyre retreading business, as well as sales and distribution of all its products and services in the UK will continue. The Group is also investing in high-tech and digital activities, as illustrated by the Group’s recent acquisitions, including blackcircles.com and Fenner.