Alexander Dennis has begun a statutory consultation process that could see up to 400 jobs cut, following proposals to close its Falkirk facility and potentially scale back production at its Larbert headquarters.
The proposed changes would see the bus and coach manufacturer consolidate its UK body manufacturing operations to a single site in Scarborough, England. The move affects around 22% of Alexander Dennis’ workforce and represents approximately 4% of the global workforce of its parent company, NFI Group.
The company cited the need to respond to “changing market dynamics” as it concludes a strategic review. Manufacturing operations at the Glasgow Road site in Camelon would cease entirely, while production lines at Larbert may be suspended upon completion of current contracts.
Paul Davies, president and managing director of Alexander Dennis, said: “We are proposing a new UK manufacturing strategy to underpin financial sustainability and lower operating costs in the face of changing and challenging market dynamics.
“We must take significant action to drive efficiency to allow our operating model to be competitive. It is extremely regrettable that as part of this, we must place jobs at potential risk of redundancy and propose to cease manufacturing operations at some of our facilities.”
Davies added that the wider economic impact could be significant. Over the past five years, the company has spent more than £1 billion with around 1,000 UK suppliers. For every direct job in bus manufacturing, the company estimates there are up to four indirect roles in the domestic supply chain.
He also criticised the current policy environment in the UK, claiming it fails to reward local content or job creation. “While stakeholders have been sympathetic of the situation, the stark reality is that current UK policy does not incentivise or reward local content, job retention and creation, nor does it encourage any domestic economic benefit,” he said.
Deputy First Minister Kate Forbes described the news as “hugely worrying” for workers and their families. She confirmed that the Scottish Government has been in active dialogue with Alexander Dennis and NFI, including direct discussions with the First Minister and senior officials at Scottish Enterprise and Transport Scotland.
“We will continue to explore all options during the consultation period to help the company retain its highly skilled workforce and facilities at Falkirk and Larbert,” she said. “In the event of job losses, the Scottish Government will offer support through our Partnership Action for Continuing Employment initiative.”
Trade union GMB Scotland also expressed alarm over the announcement, urging all parties to prevent further damage to Scotland’s industrial base.
Robert Deavy, GMB Scotland’s senior organiser for engineering and manufacturing, said: “This is a hammer blow for communities already reeling from the closure of Grangemouth. Like then, we are already hearing the same warm words from ministers about how they have tried but failed to secure workers’ jobs.”
The consultation is ongoing, and the final decision on site closures will follow its conclusion.
