The First Minister has spoken out against unfair competition from abroad that is said to be depriving BiFab of life-saving contracts.
Millions of pounds for supporting Scottish firms were lying dormant in bank accounts while Michelin Dundee spiralled into decline.
The Tay Cities Deal (TCD) must not be used to support Michelin workers at the expense of other projects, governments have been warned.
Michelin Dundee: Devastating news comes days after NHS Tayside revealed plans to shed hundreds of jobs
News that Michelin plans to close its Dundee plant comes just days after it was revealed that hundreds of jobs will be lost in the local health service over the next few years.
The Tay Cities Deal is being delayed in the wake of the jobs crisis at Michelin.
Michelin plans to close its factory in Dundee by 2020.
Firms face a cash crisis in Tayside and Fife from a Brexit squeeze on lending from big banks, a report warns.
Scotland has avoided recession after the economy grew by 0.8% in the first three months of the year.
The newspaper industry in Scotland contributes about £1bn a year to the country’s economy, a report has found.