New jobs as future of Michelin Dundee is secured
First Minister confirms 140 jobs created at "factory of the future"
More than 100 new jobs have been created, and hundreds more safeguarded at the Michelin factory in Dundee with plans to turn it into a state-of-the-art manufacturing plant.
First Minister Alex Salmond today announced that Scottish Enterprise support has brought a share of a UK wide investment package worth up to £50 million from Michelin into its Dundee operation to convert it into a "factory of the future" that will make the next generation of fuel efficient tyre.
The first tranche of this investment is already in place, ensuring that the Dundee factory, which now employs 860 staff including 24 apprentices, remains at the cutting edge of tyre production as a key facility for Michelin, the world's largest tyre manufacturer.
The funding will lead to the recruitment of 140 new staff and the commencement of building works to install new equipment.
The commitment will also secure the future of Michelin's innovative on-site apprentice training centre, which has trained hundreds of modern apprentices and Skillseekers for work in the Michelin factory and other engineering firms in Tayside.
The First Minister said: "This commitment to Dundee by Michelin is a resounding vote of confidence for the staff at the plant, who can now look forward with confidence to a bright future making the next generation of fuel efficient tyres.
"Assisted by RSA funding from Scottish Enterprise, Michelin has already begun transforming the Dundee factory to enable the hundreds of 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 Dundee has now secured the future of this great manufacturing plant, creating 140 new jobs and ensuring the excellent work of the apprentice training centre on site can continue for many years to come.
"All of the workers here in Dundee have worked incredibly hard to ensure this project goes ahead, and today will be an extremely proud day for every member of staff."
Eric Le Corre, Managing Director, Michelin UK, said: "We are extremely excited about this planned investment as it shows that the Michelin Group is firmly committed to the future of tyre manufacturing in the UK, and underlines our desire to strengthen the future commercial presence of Michelin in the UK.
"As the biggest employer in the UK tyre industry it is not only great news for Michelin but also for the UK economy, and especially for the communities around our plants.
"The importance of this six-year investment plan is reinforced by the fact that both the UK and Scottish governments have agreed to support this initiative with grants and we look forward working with them to re-establish the UK's position as a major force in global manufacturing."
Charlie Stewart, company growth support director, Scottish Enterprise, said:"Michelin is a forward-thinking, internationally recognised business with a strong commitment to its role in Scotland and in the local Tayside economy. Scottish Enterprise and Scottish Development International have worked extensively with Michelin's team in Dundee to provide an integrated package of support including assistance with staff training and skills development and help towards becoming an energy efficient, zero waste factory.
"This RSA award will enable the company to expand its manufacturing operations in Dundee and introduce a next-generation energy saving tyre product, allowing Michelin to invest in a more sustainable business future.
"RSA is a key tool we use to help home-grown companies expand in Scotland and to encourage foreign investors to locate or grow their operations here. In doing so, we can help create more jobs for local economies, increase company turnover and ultimately boost Scotland's long-term economic growth. We look forward to working with Michelin in the future to help further realise its ambitious growth plans."
The funding from Michelin into its Dundee plant was secured with the help of a Regional Selective Assistance award from Scottish Enterprise.
Regional Selective Assistance (RSA) is the main national scheme of financial assistance to industry, and is administered by Scottish Enterprise. The scheme provides discretionary grants to investment projects that will create and safeguard employment in areas designated for regional aid under European Community law.
The Dundee facility is the only tyre factory in Scotland and one of three UK production sites for Michelin plc, the largest tyre manufacturer in the UK and the world.
The Energy Saver Tyre to be made at the plant is Michelin's fourth generation green tyre that has been shown in independent tests to offer the best fuel consumption and tyre life of any European competitors. The tests - carried out by the German motor vehicle inspection association - also revealed it was the top performer in wet braking examinations.
Since its inception, Michelin's on site training facility in Dundee has had support from Skills Development Scotland (and its predecessors) for 150 Modern Apprenticeships. At present, 51 young people are undergoing training at the site - 27 of whom are from firms elsewhere in the region.
Contact: Chris Mackie on 0131 244 2939 / 07825 106 184