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September 11, 2018 02:00 AM

Michelin could cut jobs at Scotland plant

European Rubber Journal
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    Michelin said its plant in Dundee, Scotland, faces job cuts amid "challenging" trade conditions.

    DUNDEE, Scotland—Michelin has warned of potential job cuts at its tire production plant in Dundee amid what it described as "extremely challenging trading conditions."

    Michelin, in a statement, said it expects the plant's output to fall "significantly below capacity" to a maximum of 5.4 million car and light truck tires per year over the next three years from 6.2 million units in 2017.

    The company has cited an "influx of cheap tires from Asia and falling demand for smaller premium tires" for the decline in output.

    Michelin said it was working with employees and unions to address market challenges.

    "We will explore all options to maximize the efficiency of the plant, and those options could include restructuring working patterns and reducing headcount," the firm said.

    Michelin manufactures passenger car and light truck tires at the Dundee plant. In 2015, Michelin said it would invest about $80 million to increase production by 30 percent by 2020.

    The investment included the installation of new machinery, enabling the production of larger tires which are a growing segment of the market. It also envisaged a new on-site warehouse to accommodate the rise in production.

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