The Michelin tyre factory in Dundee is set to stop production for three weeks this month due to "very challenging market conditions".
In an announcement from Michelin the company said its staff were in the process of receiving an update on changes to its production programme over the coming four months.
The statement said the changes are in response to "very challenging" market conditions deriving from reductions in tyre markets in the Euro zone, mainly in southern Europe. It added that stock levels have been further impacted by a very mild winter.
Impact on employees is said to be limited and the factory has said the time at the end of May will be used to "accelerate certain progress actions" as well as carrying out training programmes.
The statement said: “A number of Michelin factories across Europe, including Dundee have therefore decided to reduce output to manage the market requirements and stock conditions. Dundee has been impacted as the main issues in the market centre around the smaller car tyre ranges which Dundee produces.
“In response to this Dundee will be stopping production for a three-week period from the end of May until mid June.
“During July and August the plant has a number of closure periods to facilitate employees’ holidays. Some of these will be extended.
“While the strategy remains growth and the introduction of new tyre making machines, which will allow the plant to make the tyres of the future, the current market conditions have led Michelin to slow its investment in the Dundee plant to better match the growth now foreseen in these markets.
“This change will not impact on jobs in the factory but will delay some of the investment plans announced in 2011 during the next five years.”
In November last year First Minister Alex Salmond visited the factory and announced 140 new jobs. It was given £5m funding from Scottish Enterprise through a regional grant scheme.
The factory employs 860 staff and the plant is Scotland’s only tyre manufacturer.
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