AN agreement has been reached to establish a Michelin-Scotland Innovation Parc on the site of the tyre manufacturer’s factory in Dundee and to secure its long-term future.

A memorandum of understanding (MoU) was signed on Monday night, creating the Michelin-Scotland Alliance, a partnership that will see the French company work with Scottish Enterprise, Dundee City Council and other partners to transform the site and bring new economic and employment opportunities. It is hoped significant employment can be generated in manufacturing, recycling and low-carbon transport.

Economy 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.”

A dedicated programme office has been established to help drive the first phase of the Michelin-Scotland Alliance projects forward through a “One Scotland” approach that engages all of the relevant local, regional and national organisations.

Remi de Verdilhac, Michelin’s secretary general, said: “I would like to express my gratitude first and foremost to our workforce who have reacted with great dignity and professionalism in the light of recent events. Their future is our priority.”

Scottish Enterprise chief executive, Steven Dunlop, said: “The signing of this agreement marks the start of a journey.

“We don’t underestimate the scale of the challenge but we firmly believe there’s a win-win where Dundee and the sizeable site at Baldovie, along with its dedicated workforce, could have a starring role in delivering Scotland’s transition to a low-carbon economy.”

Council leader, John Alexander, said: “The Michelin-Scotland Innovation Parc has the potential to deliver significant employment and investment opportunities while placing Dundee firmly at the forefront of low-carbon technology.”

Marc Jackson, the Unite union convener at Michelin, added: “Michelin could have walked away after their announcement but the company have listened, which must be acknowledged.”

But he added that it was the “reality” that jobs would be lost.