Michelin, the French tyre manufacturer will invest up to £50 million (US$79m) in Ballymena, Dundee and Stoke-on-Trent – UK over the next six years.
The funding will lead to the recruitment of 140 new staff and the commencement of building works to install new equipment.
The tyre maker on Monday said that the first tranche of this investment is already in place, ensuring that the Dundee factory remains at the cutting edge of tyre production as a key facility for Michelin.
“This commitment to Dundee by Michelin is a resounding vote of confidence for the staff at the plant, who can now look forward with confidence to a bright future making the next generation of fuel efficient tyres the First Minister said.
Shona Robison, SNP MSP for Dundee City East, said: “This is fantastic news for Michelin and Dundee. It represents much needed private sector investment in the city and will not just secure the future of the many jobs already at Michelin but will also bring much needed new jobs and training opportunities, particularly for young people.”
Tyre volumes were cut and the outlook appeared bleak, but instead of making redundancies, management and staff agreed a radical plan to save jobs by cutting working hours in line with productivity.