Michelin: Restructuring, layoffs a possibility for Dundee tyre plant

Michelin had anticipated annual production of no more than 5.4 million tyres in Dundee over the next three years - an un-sustainably low level

It isn’t just retreaders who have suffered at the hands of cheap tyres imported from the Far East. In a statement issued today, Michelin confirms that its plant in Dundee “continues to face extremely challenging trading conditions, primarily due to the influx of cheap tyres from Asia and falling demand for premium tyres in smaller dimensions.”

Michelin stresses that it is “working with employees, unions and the Michelin Group to meet these market challenges,” however current forecasts for the coming three years peg production at a maximum of 5.4 million tyres per annum, a level the tyre maker says is “significantly” below capacity.

In order to maximise the Dundee plant’s efficiency, Michelin intends to “explore all options,” with possible measures including “restructuring working patterns and reducing headcount” within the 850-strong workforce.

The statement concludes: “Michelin Dundee continues to appreciate the hard work and flexibility of its employees, and we will update them before the end of the year.”

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