Groupe Michelin is to close its tire plant in Dundee, Scotland by mid-2020 with the loss of 845 jobs, the company informed employees there on 5 Nov.
The Dundee site, which opened in 1971, manufactures only 16-inch and smaller tires for passenger cars, explained a Michelin statement.
This market, it said, has faced serious difficulties in recent years due to a structural decline in demand for these tire sizes and competition from low-cost, entry-level products from Asia.
These factors “have made the plant unsuitable and its conversion [to produce other types of tires] is not financially viable,” said the French group.
As well as enhanced redundancy packages and early retirement measures, Michelin said it will offer comprehensive assistance to employees seeking to start new careers.