Bus firm Alexander Dennis to close Falkirk site with loss of 115 jobs

Bus manufacturer Alexander Dennis is proposing to close its Falkirk plant with the potential loss of 115 jobs.

The move comes six months after the Scottish government announced a £4m furlough scheme aimed at saving the company's operations in Scotland.

The scheme was introduced after Alexander Dennis said it was planning to switch production to Yorkshire, putting up to 400 jobs at risk in Falkirk and Larbert.

The firm is now planning to close its Falkirk facility and convert its Larbert manufacturing facility to a chassis manufacturing site.

Alexander Dennis said the proposal would safeguard about 200 skilled manufacturing and support jobs which were previously at risk of redundancy, but that 115 posts would be lost.

The Unite union said the news would come as a "cruel blow to the workforce".

First Minister John Swinney visited the Larbert factory last September to announce details of the furlough scheme, which offered a reprieve for 400 staff threatened with redundancy.

Swinney said the support depended on the manufacturer being able to show it had enough orders to sustain operations in Scotland.

The furlough scheme ended earlier this month and the company says it is in discussions with the Scottish government about an extension.

Last week, it was announced that the firm is due to receive orders for more than 100 zero emission vehicles through a Scottish government scheme.

Transport Scotland announced £45m in government money for five bus operators, with Rock Road and Lothian Buses set to purchase from the Falkirk-based manufacturer.

Speaking in Stirling, Swinney said he was "very concerned" by the latest news.

He said there were some "significant issues" around procurement which needed to be resolved by the UK government.

"I would encourage the UK government to fulfil their promises and their commitments to Alexander Dennis by reforming those arrangements in relation to procurement," he said.

"We'll work with the company to secure continuity of employment as far as we can do so in working to secure the future of the plant."

Paul Davies, Alexander Dennis president and managing director, said: "We remain grateful to the Scottish government for the furlough scheme support to secure these jobs, maintaining skills and manufacturing capability in central Scotland.

"We will continue to work with the Scottish government, its agencies and the trade unions to support staff during the consultation period."

The company said it was planning to retain approximately 350 roles in Scotland.

It said the new proposals would enable it to "better align with the current market" and represent the "best possible outcome" in the current climate.

Alexander Dennis said the UK domestic bus manufacturing sector had lost significant market share in 2025.

More than half (51%) of all zero-emission buses purchased in the UK are sourced from overseas manufacturers, the company said.

Davies said: "We continue to repeat the same calls to both governments to level the playing field, recognise the cost of manufacturing in the UK and the fact that these higher costs flow through the supply chain.

"Manufacturing in this country needs to be better supported if we are to generate the economic benefit that the country so badly needs."

Sharon Graham, Unite union general secretary, described the announcement as "shattering".

"It is an economic shock which the company has chosen to inflict on the workforce and the wider community when it has other viable options.

"This doesn't need to happen," she said.

The GMB Scotland union said the Falkirk workforce deserved greater support.

Robert Deavy, senior organizer in manufacturing, said the Scottish and UK governments had failed to deliver crucial contracts while funding orders to other countries.

"How many Scottish jobs must be lost and factories closed before our governments understand the risks of sending contracts around the world?" he asked.

A Scottish government spokesperson said: "The Scottish government remains in regular contact with Alexander Dennis and trades unions and stands ready to discuss all options, across a range of areas, to protect skilled jobs and achieve the best economic outcome for Scotland.

"The company retains the option to evidence a claim for up to £4.1m of Scottish government funding to support its staff furlough scheme, subject to conditions being met. No claim has yet been received."

The UK government said the UK was a global leader in bus manufacturing.

"We've committed £15.6bn through the spending review to help local leaders improve transport and support the transition to greener buses."

A spokesperson added that an expert panel had "taken action to strengthen the market by providing greater certainty for industry".

There are two ways to think of today's announcement.

It still represents the loss of a large number of manufacturing jobs in the Falkirk area.

Combined with other recent jobs blows, such as the closure of the Grangemouth refinery, the area faces some real economic challenges.

But - without minimising the impact on those whose jobs are at risk - the situation today is still nowhere near as grim as it appeared to be last summer.

Alexander Dennis was planning to end all manufacturing around Falkirk and Larbert. All the work would be in Scarborough and about 400 jobs would have been lost.

However, this is still not the outcome the unions fought for.

The Scottish government's furlough scheme was designed to save the jobs, not reduce job losses. However, it is notable that no claim has yet been made on the scheme by the company.

BBC Scotland understands the company will not attempt to claim furlough money to help reimburse it for the wages of those staff who are now under threat.

Unions are furious at today's announcement. The question is whether there is any way of making the company reconsider the job losses.