Michelin Scotland Innovation Parc (MSIP) has changed its strategy after struggling to secure tenants for the largest buildings at the former Michelin tyre factory in Dundee.
It has been almost four years since tyre production stopped at the Baldovie site.
Since then millions of pounds have been spent developing the campus infrastructure.
The vision of the MSIP project – which is backed by Michelin, Scottish Enterprise and Dundee City Council – was to replace the 850 jobs lost when Michelin decided to shut down Dundee.
There has been consistent interest with MSIP even being highlighted on American television in a programme hosted by Cheers star Ted Danson.
But attracting a tenant who could take one of the large buildings and create hundreds of jobs has so far remained elusive.
MSIP boss reflects on successes and challenges
MSIP chief executive Greig Coull said the project has come a long way in the past three years.
He highlights the creation of a £5 million innovation hub and an on-site skills academy as among the recent successes.
Finding tenants for smaller units on the site has also been successful, with the campus now home to 15 companies, including electric bus company Ember which has its depot at MSIP. In total these firms have brought 178 jobs.
But the struggles to fill the biggest buildings – the main contributors to a rates bill of £1 million a year – has meant a change of strategy.
Initially the MSIP vision was to attract complimentary firms working in sustainable mobility and low carbon energy.
But Mr Coull said the scope of companies MSIP was now talking to had “widened”. Sustainable mobility has been taken out of the mission, with product and process decarbonisation in its place.
He said: “In terms of our overall mission to create the 850 jobs, to contribute to the local and regional economy, to move the dial in terms of technology and to provide skills – none of that has changed.
“What has changed to a certain extent is our target sector market.
“Understanding that it was becoming difficult to fill the larger buildings – and that’s what we need to do to ensure that we are on a secure and sustainable business footing – we have widened the scope.”
MSIP strategy for empty units
Scottish battery company AMTE previously planned to take the site’s largest unit for a production facility. The investment would have been at least £160 million and have created 200 jobs.
But this ambition collapsed when AMTE went into administration last year.
Mr Coull said MSIP is now open to hearing from companies from across 17 sectors ranging from agriculture to aeronautics.
He adds: “We are talking to four companies about the larger units at the moment.
“Looking back, there was a period where we were disrupted by all sorts of things. I think people began to understand what Brexit meant.
“There was a certain nervousness about investment and Dundee missing out on investment zone status has not helped this.
“We had one company that was interested in coming here that said no, as long as the Ukraine conflict was going on.
“This year is an election year and people are considering what’s going to come out of that.
“But generally the business outlook is healthier than it has been in some time.”
Other MSIP developments
MSIP has also created innovation labs, complete with 3D printing and laser cutting machines, which offers flexible space for start-up companies who don’t want to commit to a three or five year lease.
It has also had more than 40 companies go through on-site 12-week business accelerator programmes to help scale their businesses. This has helped unlock £5m of funding in these companies, £13m in additional turnover, and the creation of 81 jobs.
The site has also had 3,000 school pupils from 16 secondary schools through its doors.
Future ambitions include developing land to the north of the site to create more space for businesses to grow on site.
But the focus for the next year is clear – to find a solution for the largest buildings.
Mr Coull said: “The main challenge and disappointment and frustration is that we don’t yet have anyone in the three large buildings.
“As the clock ticks we are paying rates and insurance and that’s a constant drain on our operational capacity.
“We continue to prospect for large scale advance manufacturers.
“In a year’s time we’d like to have secured a viable solution for the three large buildings.
“We are still confident about replacing the 850 Michelin jobs – and ideally going beyond that.”
