A memorandum of understanding has been signed which will see Michelin’s Dundee plant repurposed instead of facing closure.
In November, the tyre manufacturer announced it was to close the plant, axing 845 jobs in the process. The company now plans to develop a manufacturing, remanufacturing, recycling and low carbon transport hub at the factory, with no word on how many jobs will be kept as a result of repurposing.
The memorandum of understanding was signed by Scottish Enterprise CEO Steve Dunlop, Michelin general secretary Remi de Verdilhac, and Dundee City Council leader John Alexander.
Verdilhac said: “I would like to express my gratitude first and foremost to our workforce who have reacted with great dignity and professionalism in the light of recent events. Their future is our priority.”
Unite union, which represents the majority of the factory’s workers said it welcomed to the memorandum of understanding, and added: “Michelin could have walked away after their announcement but the company have listened, which must be acknowledged.
“However, the reality is that a significant number of jobs will be lost. Unite throughout this process is determined to get the best deal for every employee on site whether it is for those who wish to leave or those who wish to find new employment on site.”
Economy secretary Derek Mackay, said: “I welcome Michelin’s formal commitment to work in partnership to develop the next phase of their presence in Scotland, including the skills and the capacity of their workforce and the transformation of the site.”