Alexander Dennis secures Scottish government support to keep manufacturing sites open

Alexander Dennis intends to keep its Scottish manufacturing sites open and operational. The announcement came today “following intensive engagement with internal and external stakeholders, the company intends to keep its Scottish manufacturing sites open and operational”, the company states.

The proposal was made possible through the advocacy and intervention of the Scottish Government and Scottish Enterprise, combined with the company’s trade union partners taking a constructive, solution-focused approach, reads the press note.

The announcement comes a three months after the decision, shared in 11th June, to begin a consultation process aimed at reshaping its UK manufacturing footprint. The consultation was said as looking at consolidating its UK bus body manufacturing operations into a single site in Scarborough, England, then halting Falkirk and Larbert’s Scottish facilities.

Alexander Dennis achieves support from Scottish government

Now, a key element in creating a viable path forward for Alexander Dennis’s Scottish manufacturing operations “is a furlough scheme for roles that are required to sustain future manufacturing capacity. This scheme will run for 26 weeks to enable the required lead-times to get manufacturing back online.”

Scottish First Minister John Swinney confirmed the support from the Scottish Government in a speech to workers as part of a visit to Alexander Dennis’s Larbert site today, alongside key stakeholders including Scottish Enterprise.

Alexander Dennis says it has seen increased demand for its single and double-deck buses in recent weeks, and the company is confident in the placement of further orders to support Scottish manufacturing. Details of this remain commercially sensitive at this stage, Alexander Dennis stresses.

However, to improve its competitive position, Alexander Dennis continues to propose further changes to its business structure, with expectations that 11 roles not directly linked to Scottish manufacturing remain at risk of redundancy in the ongoing statutory consultation.

Paul Davies, Alexander Dennis President & Managing Director, said: “We are deeply grateful for the Scottish Government’s commitment to preserving jobs, skills, and industrial capability in the region. Today’s announcement marks a turning point. The Scottish Government’s support allows us to propose a new outcome to our statutory consultation today. Together with our team members’ acceptance of new terms and conditions through the trade union ballot, and the confidence we have in securing new orders, we will be able to keep our manufacturing sites in Larbert and Falkirk open and operational. This decision saves hundreds of jobs within Alexander Dennis and supports our 1,000 suppliers throughout the UK. This has been made possible by collaboration, determination, and a shared belief in the value and future of domestic manufacturing, which is a critical driver of Scotland’s economy.”

Scottish Enterprise Chief Executive Adrian Gillespie said: “This welcome announcement signals a strong commitment to supporting and retaining vital Scottish manufacturing expertise in an important, growing market. We’ve reached this outcome through partnership working at its best, and I’d like to thank everyone involved for their dedication. Scottish Enterprise looks forward to working with the company to build a successful future in Scotland.”