Michelin Tyres Investing
Firstly, this is great news for the Dundee and Scottish economy. As a result, any new investment should be grabbed with both hands. Indeed, this investment cannot be underestimated. Of course, with the onslaught of globalisation.
As a result, the giant French tyre makers are restructuring their other tyre plants in Stoke-On-Trent and Ballymena in Northern Ireland. Thus modernisation of its logistics and warehousing in Stoke. Also, running down of the Ballymena factory by mid-2018.
The proposal to run down the truck tyre factory in Ballymena is said to be the results of a slow down in truck tyre usage in Europe. Of course, said to be caused by the financial crises of 2007.
Stating a figure of a decrease of five million tyres since that time. Tyre imports from China and other Asian countries have also doubled in size in recent years. making the tyre market a tough market to sell into. Modern tyre factories have exploded in recent year. Thus, flooding the market with an excess of millions of tyres. Including the truck tyre market.
Michelin Tyres Investing in Dundee Plant
Michelin truck tyres are in my opinion still the best quality in the world. However, hauliers profits are being squeezed all the time. Hence, committing them to buy cheap tyres for their truck fleets. As a result, premium tyre makers are suffering from the amount of tyres that they make and then sell. Tyre building machines at Ballymena. Are not capable of making the high tech tyres. The amount of investment required to upgrade the plant is prohibitive, particularly at a time when that capacity is not required. So closure was imminent.
The good news is that Michelin are investing in the car tyre plant in Dundee.
Tyre manufacturer Michelin is getting £4.5 million of public cash as part of a £16.5m investment in its Dundee factory, the First Minister has announced.