Hundreds of jobs at risk at Michelin as company says it will close factory

Michelin has announced plans to close its factory in Ballymena, Northern Ireland, a move that could mean the loss of 860 jobs.

The company said it will "run down" the tyre manufacturing plant by the middle of 2018 as part of a restructuring plan.

It said it would be investing in its sites in Dundee and Stoke on Trent.

Union representatives have condemned the announcement in the month before Christmas and say they are "hopeful" they can convince the company to reverse the decision. Trade union Unite described it as "devastating" for the whole of the local economy.

The announcement comes a year after another major employer in Ballymena - the JTI Gallaher tobacco factory - announced plans to close its operation in the town by 2017, with the loss of around 870 jobs.

The company said the decision to end operations in Ballymena was down to a fall in demand for truck tyres following the financial crisis in 2007. Demand has dropped by more than five million as a result of the crash.

At the same time, the firm blamed a "huge influx" of tyres produced in Asia, and high energy costs making production unsustainable.

Michelin has decided to concentrate its production at larger sites. It believes the cost of upgrading equipment at the Ballymena site to keep it competitive for the future are too high.

Trade unions have repeatedly urged the government to do more to help the plant with its energy bills and provide funds for modernisation.

The local MP for North Antrim, Ian Paisley said central government had provided assistance in reducing energy costs, but described the news as "apocalyptic" for employment in his constituency.

He said: "For North Antrim, this means the loss of millions of pounds of wages annually and is, frankly, hard to come to terms with."

The firm has offered to provide support packages to any staff willing to re-locate for jobs in the UK or Europe.

A consultation with employees will now take place.