Alexander Dennis, a major UK bus manufacturer, has announced plans to consolidate its UK manufacturing operations into a single site in Scarborough, England, prompting fears for the future of bus production in Scotland and putting around 400 jobs at risk. The firm, which currently operates plants in Falkirk and Larbert, has entered a consultation process regarding the closure of these sites upon completion of existing contracts, a move that would end bus body manufacturing in Scotland.

This decision has had significant local repercussions, notably at Greenfold Systems Ltd in Dunfermline, a crucial supplier that manufactures parts for Alexander Dennis buses. Approximately half of Greenfold’s workforce of around 180 staff are involved in producing components for the buses. Workers there have been informed about potential redundancies, with up to 90 jobs at risk in Dunfermline alone. The building dedicated to bus parts production is one of three sites operated by Greenfold, the others being in Lochgelly and Chatham, England.

The announcement of potential closures has sparked strong reactions from political representatives and trade unions. Labour MP for Dunfermline and Dollar, Graeme Downie, criticised the situation as an example of wider economic mismanagement, saying the risk to these jobs highlights the “ripple effects” of inadequate government support for Scottish manufacturing. Deputy First Minister Kate Forbes pledged that the Scottish Government would “leave no stone unturned” to secure the futures of the workers involved, while Minister for Business and Employment Richard Lochhead underscored engagement with the company and efforts to assist through initiatives designed to respond to redundancy situations.

The Scottish Greens have called for a concerted government response to retain and retrain the at-risk workforce, emphasising the broader economic impact beyond direct job losses. Mark Ruskell MSP warned the closures could affect up to 1,600 more jobs indirectly in the surrounding Falkirk and Grangemouth areas. Unions have been equally vocal, with Unite general secretary Sharon Graham describing Alexander Dennis’ plans as “devastating” and a serious economic blow to communities already grappling with industrial decline, notably following the closure of the Grangemouth oil refinery.

From the company’s perspective, the restructuring aims to reduce costs and boost efficiency by concentrating production at a single Scottish site. Alexander Dennis president and managing director Paul Davies said the closure was not a “done deal” and the company was still in consultation. He highlighted the need for consistent orders, estimating a requirement of 70 to 100 buses by the end of this year and around 300 to 400 next year to stabilise the business in Scotland. However, without these substantial orders or regulatory changes, the consolidation appears more likely.

Industry challenges compound the issue; Alexander Dennis previously expressed concerns over an “uneven playing field” regarding zero-emission bus funding, which it argues disproportionately benefits foreign competitors with lower labour costs. The company has called for tariffs on imported electric buses to protect domestic manufacturing jobs. This context illustrates ongoing difficulties for Scottish bus manufacturing within wider market and policy frameworks.

The Scottish Liberal Democrats have also urged the SNP government to engage proactively with Alexander Dennis to find a solution and revitalise support for Scottish manufacturing. Calls have been made for temporary measures such as furlough schemes to support workers while production stabilises. Meanwhile, local staff at the Falkirk site have described the atmosphere as “numbness” and devastation, reflecting deep concerns about the immediate economic and social impact.

With the consultation process underway, the final outcome remains uncertain, but the potential loss of hundreds of jobs and the end to bus manufacturing in Scotland underscore significant challenges for the sector, the workforce, and the local economies dependent on this industry.

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Source: Noah Wire Services