Michelin have made a deal with Scottish Ministers to “repurpose” its Dundee tyre factory after production ceases, according to a union.
The joint commitment from the French firm and those involved in the Michelin Dundee Action Group has been describing as helping protect jobs at the site.
Union bosses welcomed the establishment of the Michelin-Scotland Alliance, which they say will push to create opportunities in manufacturing, “remanufacturing”, recycling and low carbon transport.
They have also claimed “significant” job losses will still go ahead.
Marc Jackson, Unite convener at Michelin Dundee, said: “We are pleased that a number of viable proposals designed to repurpose the site are being given significant political and financial support.
“Michelin could have walked away after their announcement but the company have listened, which must be acknowledged.
“However, the reality is that a significant number of jobs will be lost.
“Unite throughout this process is determined to get the best deal for every employee on site whether it is for those who wish to leave or those who wish to find new employment on site.
“Delivering these objectives is our priority.”
It was announced in October the tyre plant, which employs 845 workers, would cease production by mid-2020.
Scottish Finance Secretary Derek Mackay said: “I welcome Michelin’s formal commitment to work in partnership to develop the next phase of their presence in Scotland, including the skills and the capacity of their workforce and the transformation of the site.
“This agreement confirms our shared aim to secure a long-term future for the site and to generate significant employment there.
“The Scottish Government will continue to do everything in its power to support the repurposing of the site.”