Michelin is to stop production at its Dundee plant in Scotland for three weeks at the end of this month in response to falling demand across Europe, although no jobs will be lost.
Tough trading conditions in Southern European in particular, coupled with a mild winter, have led the French tyre manufacture to reduce output at several factories, with employees at the Dundee plant due to receive an update on the situation today (14 May).
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“It is a temporary measure…to allow stock to go down a bit before any more is produced,” a Michelin spokesman told just-auto.
“It is only a temporary closure in the UK. It is just to do with the UK tyre market and we are no different to anyone else.”
Dundee will stop production for a three-week period from the end of this month until mid-June. During July and August the plant has a number of closure periods to facilitate employees’ holidays, with some of these extended.
“The factory will use this time to accelerate certain progress actions and training programmes for its workforce,” said a Michelin statement
“The impact on employees will be limited to moving time to accommodate this training and then banking time for use later in the year or in 2013.”
Michelin says no jobs will be lost as a result of the shutdown, but adds some of the investment plans up until 2016 will be delayed.
