The last tyre has been produced by Michelin Dundee, the company announced today.
The factory – which had been due to close in June – will not restart production when Covid-19 lockdown restrictions are lifted.
The machines at the Baldovie factory were turned off on Monday in light of the Government’s announcement urging people to stay at home.
Michelin had initially planned to pause production until April 13, when it intended to restart manufacturing until the factory’s closure this summer.
However, the global tyre firm today said it believes the growing challenges caused by the Covid-19 outbreak mean that resuming production is “unviable and unwise”.
The decision has been taken in agreement with the Unite union and all employees will continue to be paid at their normal rate until the end of June.
John Reid, factory manager at Michelin Dundee, said employees would be mobilised to volunteer for projects set up by the community, government and health services to support people during the Covid-19 crisis.
Mr Reid added: “Our priority remains the safety of our workforce. This is an unexpected end to tyre production at our factory, but we believe this is the best decision for our employees and their families.
“We will be developing a new employability programme to help people find their next positive destination, be that retirement, further education or a new job.
“We’re also conscious that some people will find being confined to their homes tough, so wellbeing support will continue to be important. We will be using technology and social media combined with a limited presence on site until the virus allows more normal working.
“We would like to take this opportunity to thank our team in Dundee for their support and hard work during what has been a very challenging time.”
Mr Reid said output was already extremely low when the machines were turned off on March 23.
Stocks of the tyre sizes made by Michelin Dundee are high, and they are not used by critical services such as ambulances.
In addition, there were concerns that bringing many people together in a workplace could create safety issues.
In line with previous commitments, there will be intensive job search and wellbeing support available to all employees – although most of this will now be online to reduce risk.
In November 2018, around 850 Michelin staff were told that tyre manufacturing at the large Baldovie Road complex would cease in 2020.
Since then more than 500 workers have moved on to new jobs while plans are being developed to turn the Michelin factory site into the Michelin Scotland Innovation Parc (MSIP) – a hub for sustainable mobility and low carbon energy.
Shona Robison, MSP for Dundee City East, said: “The news that Michelin will stop production is not unexpected given the current Covid-19 challenges, however it is will still be a sad time for the remaining employees and the end of an era for the city.
“It’s important that this decision has been reached in agreement with the unions and workforce, who will continue to be paid until the end of June.
“I also welcome the news that employees will continue to be supported through a new employability programme.
“It is also a mark of the ethos of the Michelin workforce that many of them will now be helping with the voluntary effort across Dundee during this current crisis.
“I’m also pleased to hear that the commitments that Michelin have made to invest in the Michelin Scotland Innovation Parc will continue to ensure this important economic legacy for Dundee is delivered.”
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