MICHELIN intends to shut its Dundee tyre production plant in 2020.

The site, opened in 1971 and which exclusively manufactures 16in and smaller Michelin tyres for cars, has faced serious difficulties in recent years due to a structural decline in the demand for premium tyres of 16in and smaller, coupled with low cost, products from Asia.

Michelin Group says its priority now is to provide the 845 employees of the factory with the most effective support possible.

John Reid, factory manager at Michelin Dundee, said: ‘I understand that these proposals will come as a huge blow to our employees and to the city of Dundee as a whole.

‘The proposals are nothing to do with the UK’s decision to leave the EU, and they are absolutely not a reflection of the performance of the plant