Some Michelin Europe plants reducing production
A number of Michelin factories across Europe, including the firm’s Dundee, Scotland plant have opted to reduce output in order to manage “the market requirements and stock conditions.” According to the company, Dundee – the firm’s only British passenger car tyre factory – has been impacted because the issues centre on the car tyre sector. Recently announced investment projects are also being delayed.
As a result Michelin’s Dundee tyre factory will halt production from the end of May until mid June. The “very challenging” market conditions Michelin refers to apparently stem from falls in overall tyre demand in southern European markets. Stock levels have also been impacted by the mild winter, which implies lower than expected sales. The shutdowns are also said to have been influenced by the markets’ continuing trend towards larger tyre sizes, fewer of which are produced in Dundee.
“During July and August the plant has a number of closure periods to facilitate employees’ holidays. Some of these will be extended,” Michelin’s statement read. The impact on employees is said to be limited with factory managers using the time to “accelerate certain progress actions” and run training programmes.
While the strategy remains growth and the introduction of new tyre making machines, which will allow the plant to make the tyres of the future, the current market conditions have led Michelin to slow its investment in the Dundee plant to better match the growth now foreseen in these markets. This change will not impact on jobs in the factory but will delay some of the investment plans announced in 2011 during the next five years.”
According to the company the announced changes will not impact jobs in the factory, but will delay some of the investment plans announced in 2011during the next 5 years. In November Michelin announced the creation of 140 new jobs at the Dundee factory after receiving £5 million in funding from Scottish Enterprise through a regional grant scheme. Michelin’s Dundee plant reportedly employs 860 staff.