TYRE manufacturers Michelin are to receive £4.5 million of public cash as part of a £16.5m investment in the firm’s Dundee factory, the First Minister has announced.

The funds will pay for a series of improvements at the site, including bringing in new technology aimed at bringing about a substantial drop in environmentally-hazardous CO2 emissions.

The firm is committing £12m to the project, which will help meet the increasing demand for larger tyres, after choosing Dundee as the first place to introduce a new manufacturing technology on an industrial scale.

Government agency Scottish Enterprise is also contributing a £4.5m environmental protection grant.

The funding package was revealed by Nicola Sturgeon as she visited the factory, which employs 850 workers.

She said: “Michelin is a global leader in developing the latest technology and this investment in making the next generation of fuel-efficient tyres is another great example of a highly-innovative company.

“This commitment and investment in the Dundee site will support the 850 fantastic, skilled workers here to remain at the cutting-edge of their industry and help the worldwide drive to the low carbon economy.

“Michelin’s investment in Scotland is testament to our thriving manufacturing industry and its position as a key growth sector for the economy. Their continued commitment is proof of the skill and value of the Scottish workforce.”