An agreement has been signed to form a new company, Michelin Scotland Innovation Parc (MSIP) Ltd, which will deliver a new future for the plant focused on sustainable mobility and low-carbon energy.

The joint venture signals a long-term commitment to Dundee and Scotland by Michelin, which is ceasing production of tyres at Baldovie next year.

Jérôme Monsaingeon, Michelin’s representative on the MSIP Ltd board, said: “On 17 December 2018, together with Scottish Enterprise and Dundee City Council, we pledged to move at pace to build a new future for our Dundee site.

“Today, by incorporating MSIP Ltd, we are taking a first concrete step in delivering against our shared ambitions of providing employment opportunities for our workforce, creating a flagship innovation centre in Dundee and placing Scotland at the forefront in the fight against climate change.

“Along with our partners, the Michelin Group is deeply committed to supporting the future development of the Michelin-Scotland Innovation Parc in the years to come.

“Our workforce, through their support and professionalism, have played an extremely important role in ensuring we could set up MSIP Ltd. I would like to express my gratitude for their dedication in these challenging circumstances.”

The partners believe the Michelin-Scotland Innovation Parc will be a leading global destination for innovation, attracting companies, research institutions and skilled people to address key global challenges in which Scotland has a competitive advantage.

The partnership will provide job opportunities and skills development in the Dundee region with the aim of meeting the needs of people, place and planet.

Economy secretary Derek Mackay said: “Since Michelin announced plans to close its Dundee plant in November, the Scottish Government, our agencies and our partners have worked tirelessly to find a long-term sustainable future for the site and the workforce.

“Today’s announcement is an important milestone. The creation of the Michelin-Scotland Innovation Parc will create new employment and investment opportunities for Dundee and demonstrates Michelin’s commitment to Dundee.

“The Scottish Government will continue to do all we can to realise these ambitious plans which will provide Dundee with a first-class innovation centre.”

Steve Dunlop, chief executive, Scottish Enterprise, said: “The creation of the joint venture underlines the commitment made by Scottish Enterprise and our partners to create a long-term, sustainable future for the Baldovie plant that builds upon Michelin’s legacy of innovation and manufacturing excellence in Dundee.

“Together, we aim to create a centre of excellence in sustainable mobility and low-carbon energy that creates domestic economic opportunities while simultaneously addressing the challenges posed by the global climate crisis.”

Councillor John Alexander, leader of Dundee City Council, said: “This signing is a hugely important milestone in delivering on the pledges made after the closure was announced six months ago.

“The progress over that period is testament to the genuine commitment and hard work of all involved. In particular, Michelin’s long-term presence in the city is welcome as we build a new future for the site around sustainable mobility and low-carbon energy.

“There will be no let-up in our efforts to deliver significant employment and investment opportunities at Baldovie, with a clear focus on securing the first tenants for the Parc.”