Alexander Dennis, a leading UK bus manufacturer, is facing significant upheaval with plans to withdraw key manufacturing operations from Scotland, putting hundreds of jobs at risk across the region. The move threatens not only the workforce at Alexander Dennis sites but also those employed by subcontractors closely tied to its production, illustrating the broader impact on Scottish manufacturing.

Greenfold Systems Ltd, a Dunfermline-based firm specialising in producing components for Alexander Dennis buses, has announced potential redundancies affecting up to 90 workers. Approximately half of Greenfold’s staff are engaged directly with parts construction for the buses. The company currently operates from three sites, including Lochgelly and Chatham in England, but the Dunfermline site is central for bus-related manufacturing. The announcement has sparked deep concern among employees and local political figures. Dunfermline Labour MP Graeme Downie criticised what he described as the ripple effects of “economic incompetence” by the Scottish Government, highlighting the risk to these manufacturing jobs in Scotland.

At the core of the disruption lies Alexander Dennis’s strategic review of its UK manufacturing footprint. The company has revealed plans to consolidate its bus body production into a single site in Scarborough, England, which would involve closing its Falkirk plant and ceasing production at its Larbert factory once existing contracts are fulfilled. This consolidation could affect up to 400 jobs at risk in the Scottish operations alone, representing around 22% of Alexander Dennis’s UK workforce and a smaller fraction of the global workforce of its parent company, NFI Group.

Paul Davies, Alexander Dennis’s president and managing director, emphasised in recent testimony to a Holyrood committee that the consultation process is still underway and that “it’s absolutely not a done deal.” Davies indicated the company needs sustained orders, citing an expectation for between 70 to 100 buses by the end of the year and 300 to 400 for the following year, before stabilising the future of their Scottish manufacturing sites.

However, the uncertainty has already triggered hardship, with calls for government intervention growing louder. Some stakeholders have urged the Scottish Government to implement furlough schemes or other support measures to protect workers during this precarious period. Earlier in the month, Deputy First Minister Kate Forbes pledged to “leave no stone unturned” in efforts to support the affected workforce.

Unions, too, have voiced strong opposition to the proposed closures, with Unite describing the relocation plans as “devastating” to workers and the local communities reliant on the bus manufacturing industry. This sentiment echoes the frustrations of Scottish Liberal Democrat economy spokesperson Jamie Greene, who criticised the Scottish Government for what he called a failure to back Scottish manufacturing and bus building adequately, stressing the urgent need for constructive engagement between the government and Alexander Dennis.

Adding to the tension is the backdrop of significant public investment by the Scottish Government into Alexander Dennis, with over £8 million reportedly allocated to secure jobs in the bus building sector. Despite this funding, the company is moving forward with plans that undercut employment in Scotland, a fact that has drawn sharp criticism from unions who call for all possible avenues to be explored to safeguard the industry and preserve livelihoods.

Scottish Government officials have responded with commitments to work with businesses and unions to mitigate the impact. Richard Lochhead, Minister for Business and Employment, expressed his disappointment about the potential redundancies and outlined that Scottish Enterprise will seek to engage with Greenfold Systems to understand the drivers behind these decisions and to offer assistance where possible. The government’s Partnership Action for Continuing Employment initiative aims to support affected workers during such challenging transitions.

The situation remains fluid, with Alexander Dennis emphasising the need for a combination of regulatory changes and consistent orders to reverse or stabilise the situation. Meanwhile, the local and national economic implications of this potential scaling back of bus manufacturing in Scotland continue to cause concern, highlighting the vulnerability of a sector that once was a significant regional employer and industrial contributor.

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Source: Noah Wire Services