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Michelin Ballymena tyre factory to close in 2018 | Michelin Ballymena tyre factory to close in 2018 |
(35 minutes later) | |
The Michelin tyre factory in Ballymena, County Antrim, is to close in 2018 with the loss of 860 jobs. | The Michelin tyre factory in Ballymena, County Antrim, is to close in 2018 with the loss of 860 jobs. |
The decision is part of restructuring which will increase production in Dundee and modernise another facility at Stoke-on-Trent. | |
The company said the decision had been made due to the "significant downturn" in demand for truck tyres in Europe since the financial crisis of 2007. | |
The Unite union said it was "devastating news". | The Unite union said it was "devastating news". |
Reaction to Michelin Ballymena announcement | |
Unite's Davy Thompson said in addition to the workers directly employed by Michelin on the site, "there are approximately 500 contractors and many more in the wider economy who now face the threat of redundancy as a result of this announcement". | Unite's Davy Thompson said in addition to the workers directly employed by Michelin on the site, "there are approximately 500 contractors and many more in the wider economy who now face the threat of redundancy as a result of this announcement". |
"These were highly-paid, secure jobs reflecting the progressive employment practices of Michelin and their loss will devastate the retail and services economy in this region," he said. | "These were highly-paid, secure jobs reflecting the progressive employment practices of Michelin and their loss will devastate the retail and services economy in this region," he said. |
In its statement, Michelin said: "There is a strong need to reduce overcapacity and concentrate Michelin truck tyre production in larger, more competitive sites. | In its statement, Michelin said: "There is a strong need to reduce overcapacity and concentrate Michelin truck tyre production in larger, more competitive sites. |
"Despite great efforts and progress being made in previous years, other European plants are still more competitive than Ballymena." | "Despite great efforts and progress being made in previous years, other European plants are still more competitive than Ballymena." |
The Ballymena factory produced its first tyre on 3 December 1969. | The Ballymena factory produced its first tyre on 3 December 1969. |
It produces about one million bus and truck tyres per year, with more than 70% of its total production capacity being exported, chiefly to North America. | It produces about one million bus and truck tyres per year, with more than 70% of its total production capacity being exported, chiefly to North America. |
The company had been warning for a number of years about the threat to the future of the Ballymena plant caused by high energy costs. | |
'Valiant fight' | 'Valiant fight' |
North Antrim MP Ian Paisley said it "cannot be understated how big a blow this is to the manufacturing industry in Northern Ireland. | North Antrim MP Ian Paisley said it "cannot be understated how big a blow this is to the manufacturing industry in Northern Ireland. |
"For north Antrim this means the loss of millions of pounds of wages annually and is frankly hard to come to terms with." | "For north Antrim this means the loss of millions of pounds of wages annually and is frankly hard to come to terms with." |
He added: "The north Antrim factory has put up a valiant fight, but today they have bowed their head." | He added: "The north Antrim factory has put up a valiant fight, but today they have bowed their head." |
In a tweet, Northern Ireland's Deputy First Minister Martin McGuinness described it as "terrible news". | In a tweet, Northern Ireland's Deputy First Minister Martin McGuinness described it as "terrible news". |
Michael McGaughey, who has worked at Michelin for 18 years, said the news of the closure had come as a shock. | Michael McGaughey, who has worked at Michelin for 18 years, said the news of the closure had come as a shock. |
"There has been talk about it for a long time - with the economic situation worldwide, everybody thinks something is going to happen somewhere, but you never expect that it's going to happen on your own doorstep," he said. | "There has been talk about it for a long time - with the economic situation worldwide, everybody thinks something is going to happen somewhere, but you never expect that it's going to happen on your own doorstep," he said. |
"It will be devastating for the community - you're talking about the wages of hundreds of people locally that aren't going back into the community, so without that money being spent, it's going to have a knock-on effect on other businesses." | "It will be devastating for the community - you're talking about the wages of hundreds of people locally that aren't going back into the community, so without that money being spent, it's going to have a knock-on effect on other businesses." |
It is the second major jobs blow to Ballymena in just over a year. In October 2014 cigarette maker JTI Gallaher announced it would be shutting its plant in the town with the loss of 800 jobs. | It is the second major jobs blow to Ballymena in just over a year. In October 2014 cigarette maker JTI Gallaher announced it would be shutting its plant in the town with the loss of 800 jobs. |
Redundancies there are expected to begin in May 2016 and the factory will shut down completely in 2017. | Redundancies there are expected to begin in May 2016 and the factory will shut down completely in 2017. |