Up to 400 jobs are at risk after bus manufacturer Alexander Dennis announced plans to move operations to England.
The OEM, which has factories in Falkirk and Larbert, says it is considering moving manufacturing to a site in Scarborough in an effort to lower overall costs, deliver clearer responsibilities and increase efficiency.
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Its Scottish based manufacturing in Falkirk, which has already been reduced in recent years, would be discontinued and the site closed. Production lines at Larbert would be suspended upon the completion of current contracts.
The consultation puts up to 400 roles at Alexander Dennis at potential risk of redundancy, around 22 per cent of the company’s whole workforce.
Alexander Dennis president and managing director Paul Davies says the company must take significant action to drive efficiency to allow its 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 says.
The company, which manufactures single and double decker buses, says the new proposed structure would lower costs and increase efficiency.
The company says it is facing strong competition from Chinese electric bus manufacturers whose share of the market had risen from 10 per cent to 35 per cent.
“The stark reality is that current UK policy does not allow for the incentivisation or reward of local content, job retention and creation, nor does it encourage any domestic economic benefit,” Davies says.
“We have warned of the competitive imbalance for some time and would like to see policy and legislative changes that incentivise the delivery of local benefit where taxpayer money is invested.
“We strongly believe funding that supports public transport should lead to investment in local jobs, domestic supply chains, technology creation and a recurrent tax base.”
In 2020, the manufacturer cut 650 jobs due to the Covid-19 pandemic and another 160 jobs were put at risk in September 2024 after the company says contracts were “disproportionately benefitting” foreign competitors with lower labour costs.
The Scottish Government has since responded to the announcement, with Deputy First minister Kate Forbes saying it was “a worrying time” for the staff, their families and the wider community.
“In recent weeks, the Scottish government has engaged extensively with Alexander Dennis and its parent company NFI to understand the issues and ensure that every possible avenue is explored to mitigate the need for redundancies,” Forbes says.
“This has included discussions with myself, the First Minister, leadership within Scottish Enterprise and Transport Scotland and the UK government.
“The Scottish Government will continue to explore any and all options throughout the consultation period to allow the firm to retain their hard-working employees and manufacturing and production facilities at Falkirk and Larbert.
“In the event of any job losses, the Scottish government will provide support through our Partnership Action for Continuing Employment initiative.”
Unite the Union has responded to the news, calling out government ministers for their “inaction and silence”.
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