£8m PUNCTURE
Tyre giant pays back government grants
Tyre giant Michelin has repaid millions in taxpayer-funded grants after closing its Scottish factory.
The French firm slashed 850 jobs when it shut the gates at the plant – despite receiving more than £ 8million from the Scottish Government to fund cutting- edge manufacturing technology.
The company had faced criticism over revelations it would move the equipment to sites in other parts of the world.
Now, grants agency Scottish Enterprise has confirmed that funding dating back years has been handed back.
It said: “Michelin received g rant suppor t total l ing £ 8.3million – that amount has been repaid in full.”
Michelin also insisted that while some machinery has been relocated, the firm had invested heavily in turning its former Dundee plant into an innovation centre to support jobs in Tayside.
The firm said: “The vast majority of the manufacturing equipment, including the main tyre assembly lines which were limited to the smaller tyre sizes manufactured in Dundee, will be dismantled and scrapped.
“Some equipment that doesn’t have this size limitation will be transferred to other Michelin sites.
“The Scottish Government gave Michelin valuable support in a two-way relationship that continues to be extremely important for both parties and for Scotland as a whole.
“The Michel in Group is investing millions of pounds in the Michel in Scotland Innovation Parc (MSIP).
“This development, in which Scottish Enterprise and Dundee City Council are key partners, will deliver hundreds of jobs in cut ting edge sustainable technologies.
“These jobs are already becoming a reality, and the MS IP will bring long-term benefits to Dundee and Scotland as a whole.”
Former Michelin chief executive John Reid oversaw the setting up of the innovation park.
Scottish Enterprise handed over £1.5million to modernise the factory in June 2017.
The money was to help pay for green technology and fund machines to produce larger tyres after a rise in SUV sales.
The payment was spent buying the first electronic tyre curing technology to be used in a Michelin plant.
In September 2015, £1.1million was given to the firm to establish a “logistics hub” to increase the “capability and longevity” of the site.
In 2011, Scottish Enterprise ploughed £5.2million of taxpayers’ money into the factory.
The funds were invested in plant manufacturing the latest energy-saver tyre.
Lib Dem leader Willie Rennie said: “Michelin has received generous grant awards from the Scottish Government in recent years. If it is determined to shut up shop it is a we l c ome gesture to retur n these funds.” Scottish Greens coleader Patrick Harvie MSP added: “Michelin has been a hugely important employer in Dundee for decades and the announcement that it was to close came as a huge blow to the city.
“The Scottish Government must ensure Dundee is ready to play a pivotal role in tackling the climate crisis by investing in the city’s huge decommissioning potent ia l , ensur ing skilled jobs are retained in the north- east as the oil age winds down.”
The factory will now become an “innovation centre” offering loans and advice to businesses looking to expand.
Marc Jackson, former senior convenor for Unite at Michelin in Dundee, said: “The main piece of machinery to be relocated has been the electronic tyre curing presses. These will be used elsewhere. I’m not sure where they have been taken but they will be used.
“But a lot of the other machinery was for the smaller tyres so it will be scrapped, which is sad.
“To be fair though, Michel in have not walked away f rom their responsibilities in Dundee.
“The company went beyond what it had to in helping ex-employees find new jobs, and in helping to set up the new innovation centre.
“It is sad that it is going but the hope is that there is going to be a legacy of good highquality manufacturing jobs left in the city.” Michelin blamed the closure of the plant on lower demand for the smaller premium tyres and an increase in cheap imports from Asia.