400 jobs at risk in 'deeply worrying' move to end Scottish bus manufacturing

Bus maker Alexander Dennis has announced plans to end production in Falkirk and Larbert, putting up to 400 jobs at risk.

A union described it as a “hammer blow for communities already reeling from the closure of Grangemouth”.

Deputy First Minister Kate Forbes said it was a “hugely worrying time” and the Scottish Government would explore “all options” to retain manufacturing there.

The Alexander Dennis plant in Falkirk | Michael Gillen

The company said on Wednesday it planned to centralise production in Scarborough, and its Falkirk factory “would be discontinued and the site closed”.

Production at Larbert would be suspended after the remaining contracts were completed.

Alexander Dennis said the move would “lower overall costs, deliver clearer responsibilities and increase efficiency by removing duplicate functions and activities”.

It said up to 400 workers were “at potential risk of redundancy” - some 22 per cent of the workforce.

However, the company also warned that up to a further 1,600 jobs could be threatened across its 1,000 UK suppliers.

It said “for every job in bus manufacturing, there is a multiplier of three to four jobs in the wider supply chain and support services”.

The news follows 160 job losses announced in September by the firm, which can trace its roots in Falkirk to Walter Alexander opening a cycle shop in 1902 and launching bus tours, with bus manufacturing starting in 1924.

The company was saved by a consortium of investors when its parent body went into administration in 2004 and was bought by Canadian firm NFI in 2019.

Alexander Dennis president and managing director Paul Davies 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.

“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.

“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.”

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Ms Forbes said the Scottish Government had “engaged extensively” with the company over the last few weeks to “ensure that every possible avenue is explored to mitigate the need for redundancies”.

The Deputy First Minister said: “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.”

Read more: How SNP general election manifesto 'threatens 700 Scottish transport jobs'

However, Scottish Labour accused ministers of “selling out Scottish workers”.

The party said most new electric buses ordered using Scottish Government funding to replace diesel models had been built elsewhere, with Alexander Dennis making 44 buses out of a potential total of 252.

The party also claimed the firm had received more orders from Greater Manchester, building 254 buses for the area’s Bee network.

‘Burning sense of shame’

Scottish Labour Falkirk MP Euan Stainbank said: “This news is bitterly disappointing for the local workforce and our community.

“The company has acted too quickly when other options could have been considered before launching this consultation.

“However, the company has not had a consistent pipeline of work because the SNP has been selling out Scottish workers by buying too many buses from abroad.

“John Swinney should feel a burning sense of shame that [Greater Manchester Mayor] Andy Burnham did more to support this Scottish company than the SNP Government.

“It is an absolute failure to this community and to Scottish industry.”

‘They must try again and try harder’

GMB Scotland said bus manufacturer Alexander Dennis and ministers must

redouble efforts to secure the company’s future in Falkirk

The union, which represents workers at the plant, said every possible effort must be

made to avert the threatened loss of 400 jobs.

Robert Deavy, Scotland senior organiser in engineering and manufacturing for the GMB union, 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. If they have tried, they must try again and try harder.”

Scottish Conservatives Central Scotland MSP Graham Simpson said: “This is devastating news for Falkirk, Larbert and the wider Scottish economy.

“The loss of 400 jobs in an area already reeling from the closure of the Grangemouth demands action from both of Scotland’s governments.

“Our bus market is being taken over by low-cost Chinese imports and we need to see action to end this scandal immediately.”