The largest employer in Kirriemuir is to shut its Angus factories and move to Dundee as it looks to create hundreds of new jobs.
Technical textiles business Wilkie has acquired the majority shareholding of Michelin Scotland Innovation Parc (MSIP), the site of the former Michelin tyre factory.
With its high-spec products in demand globally, Wilkie’s ambition is to triple its Tayside workforce to 600 employees.
It also plans to invest £50 million in “cutting-edge” infrastructure and technology as part of the move.
Wilkie has operated in Kirriemuir for more than 150 years. It opened a second Angus site at Orchardbank Industrial Estate in Forfar in 2022.
Workers were told on Friday afternoon of the plans.
Dundee investment by Wilkie at MSIP
Chief executive Hamish Rowan, the sixth generation of the family business, said the decision to leave its historic Kirriemuir home was not taken lightly.
He said Wilkie needs “world-class” facilities as it competes globally for work in sectors such as defence, aerospace and oil and gas.
He said: “We’ve more than doubled our revenue and Scottish jobs in the last few years.
“We are committed to seizing the immense opportunities presented in the global technical textiles market. Our building in Kirriemuir can only take us so far.
“Moving to a new factory has been in the back of our minds for a long time. We told the workforce of our vision for new premises two years ago.
“This move marks the beginning of a new era, creating a home for Wilkie for the next 150 years.”
Last year, Wilkie acquired an American factory and also has two wholly-owned production facilities in China. Its annual turnover is around £60m.
Impact on Kirriemuir
The Wilkie team expects to start moving to Dundee in “six to nine months”. Moving all the operations could then take a further nine months.
Wilkie – historically known as J&D Wilkie – is hopeful that all its current workforce will move to the new Dundee site. It currently employs 160 staff in Kirriemuir and 30 in Forfar.
Management will consult with each member of staff about the change.
The company is also pledging to work closely with Angus Council and residents to ensure the current site, Marywell Works, is left in a safe condition.
Community input will guide the future use of the site, with Wilkie committed to supporting its redevelopment.
The factory move is a return home for Wilkie general manager John Reid, who previously was general manager of Dundee Michelin.
He said: “The factory is not closing, it’s moving to a 25-minute drive away. We hope all staff come with us.
“We will be running a consultation with staff to hear their issues, concerns and ambitions.
“There is massive opportunity and potential for each individual in terms of the growth we are looking to achieve.
“We will talk to the council and other stakeholders about what an optimal exit looks like.
“If we are successful, we’ll take all our staff with us. They’ll still be staying in Kirrie and paying their council tax in this area.
“But we also know it will be emotional for some workers and we will be sensitive to that.”
Replacing jobs lost by Michelin closure
The MSIP project has, to this point, been equally owned by Michelin, Dundee City Council and Scottish Enterprise.
It aims to replace the 850 jobs lost when the tyre factory closed in 2020.
But the MSIP team has struggled to attract a major tenant who can occupy the largest buildings on site and bring hundreds of jobs.
It has invested millions of pounds in a skills academy and innovation hub and has more than a dozen tenants who collectively employ 200 staff.
Initially the MSIP vision was to attract complementary firms working in sustainable mobility and low carbon energy.
At one stage it had a commitment from Scottish battery firm AMTE to move to the site – but that fell apart when the company entered administration.
Last year MSIP said the scope of companies it was talking to had “widened” as it was paying £1m a year in rates for empty premises.
The move will see Wilkie own more than 80% of the MSIP shares, with the rest held by Scottish Enterprise.
It will be business as usual for all current tenants, as well as the existing MSIP team, while Wilkie plans to occupy the largest vacant buildings.
The financial deal to acquire the shareholding has not been disclosed.
Mr Reid said the deal had taken about a year to come together.
He said: “It was clear the future of MSIP in the long term was going to be predicated on having a large player in the middle of it.
“I think it’s the best manufacturing site in Scotland and its value to Dundee is enormous.”
Michelin and Dundee City Council supporting Wilkie move to MSIP
The investment sees an end to Dundee City Council and Michelin having a stake in the MSIP site.
John Howe, managing director of Michelin UK, said: “Since MSIP was set up, it has focused on creating jobs and improving sustainability.
“The agreement with Wilkie delivers exactly that. We believe it will benefit Dundee, the wider region and Scotland as a whole.”
Dundee City Council leader Mark Flynn adds: “A huge amount has been achieved at MSIP since the closure of the Michelin tyre factory less than five years ago.
“This ground-breaking partnership has delivered an innovation hub, a skills academy, an accelerator programme, a home for start-ups and numerous local job opportunities.
“All this has been achieved without the City Council making any contribution of revenue funding or capital from its own resources.
“This new chapter promises significant job creation for Dundee.”
Deputy first minister Kate Forbes said it was “an important day for Dundee and for our wider efforts to transform and grow Scotland’s green economy”.
Greig Coull, chief executive of MSIP, said he was delighted to have a manufacturer bringing hundreds of jobs to the site.
He said: “Wilkie’s leadership and deep-rooted commitment to innovation, sustainability, and growth will continue our mission to drive forward decarbonisation and advanced manufacturing.
“The future looks bright, creating lasting economic, environmental, and social impact.”
Wilkie was founded in 1868 and initially specialised in linen production.
In the 1910s it moved into jute production. It first started supplying the military in the 1920s and continues to do so. It opened its first China factory in 2007.
The company’s slogan is “make extraordinary happen”. If Wilkie delivers the jobs to Tayside it believes it can, it will achieve this mission.
Conversation