Bus manufacturer Alexander Dennis has abandoned plans to close its Scottish factories after securing a £4m support package from the Scottish government.
The deal will protect hundreds of jobs at the company’s sites in Falkirk and Larbert, which had been under threat.
Scottish Government Steps In
The firm had warned earlier this year it might move all production to Yorkshire, cutting about 400 jobs in Scotland. But a new agreement will see the government cover 80% of a special furlough scheme, with Alexander Dennis paying the rest.
The scheme, which will run for six months, is designed to keep staff employed while the company secures new orders. It will be triggered once contracts are signed, bridging the gap until buses go into production.
First Minister John Swinney, who confirmed the support during a visit to Larbert, said: “This scheme is intended to act as a bridge to a sustainable future for the company in Scotland. We want to retain the workforce, and Scottish Enterprise will also provide training during this period.”
A Lifeline for Jobs
Alexander Dennis, owned by Canadian group NFI, has been under pressure from growing competition, particularly Chinese firms which now supply around 35% of the UK electric bus market.
Managing director Paul Davies welcomed the government’s intervention, describing it as “a turning point.”
“This announcement, alongside our team members’ acceptance of new terms and conditions through the trade union ballot, and the confidence we have in securing new orders, means we will be able to keep our manufacturing sites in Larbert and Falkirk open and operational,” he said.
The company said demand for both single and double-deck buses had picked up in recent weeks, giving it confidence that more orders will follow. But it warned production in Falkirk can only be guaranteed in the long term if at least 300 buses a year are built there.
Union and Workforce Reaction
The package was strongly backed by workers. In a recent ballot, 85% of Unite union members voted in favour of the furlough plan.
Unite general secretary Sharon Graham said: “The Scottish government’s support for this company-run furlough scheme is a very positive step, and one we fully support. Our next priority is securing new bus orders to get the sites back to full capacity.”
The firm confirmed that while most jobs are safe, 11 roles not linked directly to production remain at risk.
Political Praise
The move was also welcomed by Douglas Alexander, the Scottish Secretary, who said: “This will be a relief to the talented workforce. The UK government has been working intensively with partners, including the Scottish government, and actively encouraged the furlough scheme that has been announced today.”
What’s Next
The decision marks a reprieve for Scotland’s bus-making industry, but the pressure is not over. Alexander Dennis had planned to consolidate operations at Scarborough to cut costs, citing overseas competition and rising financial pressures.
Now, with government backing and union support, the company has been given time to rebuild its order book and keep production alive in Scotland.
For the workforce in Falkirk and Larbert, the announcement brings relief after months of uncertainty. But the long-term challenge remains the same: ensuring a steady flow of orders so Scotland continues to play a central role in the UK’s bus manufacturing industry.
