By Denna Bowman
Michelin tyres have announced that a multi-million pound grant it had been offered has not been cut by the new Government.
The French tyres manufacturer had announced back in February that its Stoke-on-Trent plant had been awarded up to £3.9 million through regional development agency Advantage West Midlands (AWM).
But shortly after the formation of the new government, ministers revealed they were reviewing spending projects agreed after January 1 as part of attempts to tackle the country’s deficit.
Last week the Government announced it was shelving 12 schemes to save £2 billion, but Michelin have announced that they received confirmation from the Department for Business, Innovation and Skills (DBIS) that its grant is still available, according to the Sentinel newspaper.
Michelin’s French parent firm will now release funds to develop plans for a modernisation scheme by the end of this year.
If those proposals are approved, it will unlock investment of more than £20 million over the next five years for the factory which employs more that 1,000 staff.
The project would involve new equipment, enabling the Stoke factory to re-tread the company’s latest range of truck and bus tyres and to reduce its solvent emissions.
Michelin says the scheme will secure the firm’s presence in North Staffordshire for years to come.
Peter Snelling, head of communications at the firm in Campbell Road, added: “We have had confirmation from DBIS that we are unaffected by any of this. The project goes ahead as planned.”