Scottish ministers are intensifying efforts to secure a vital order pipeline for Alexander Dennis Limited (ADL), the bus manufacturer facing the prospect of closing its Scottish operations. The company is consulting on plans to centralise production at a single site in Scarborough, Yorkshire, potentially putting 400 Scottish jobs at risk. The move, driven by the need to lower costs and boost efficiency, has alarmed unions, local officials, and government representatives who see it as a serious threat to Scotland’s manufacturing base.

In discussions before the Scottish Parliament’s Economy and Fair Work Committee, ADL’s managing director Paul Davies described the potential closure as not a “done deal,” emphasising that the company requires a significant increase in bus orders to justify keeping the Scottish operations open. Specifically, ADL needs between 70 and 100 orders by the end of this year and 300 to 400 next year. Responding, Scotland’s Finance Secretary Shona Robison confirmed the government’s commitment to exploring “all viable options” to support ADL and retain jobs. She said ministers are working closely with private bus operators, local transport authorities, and the UK Government to gauge current and future demand for double-deck buses both in Scotland and further afield.

Robison also acknowledged regulatory challenges posed by UK-wide state aid rules. The Subsidy Control Act restricts the Scottish Government’s ability to impose conditions favouring the use of domestically made goods, which complicates efforts to secure government contracts for ADL. While Scottish ministers frequently lobby to adapt these regulations for the benefit of Scottish businesses, ultimate control lies with the UK Government. Nevertheless, officials are continuing to work swiftly with Scottish Enterprise, trade unions, and other stakeholders to explore solutions that might prevent job losses.

The threat to ADL’s Scottish operations has sparked significant local and union backlash. Unite the union has condemned the proposed relocation as “devastating” for workers and called for urgent discussions with the Scottish Government to salvage the jobs. The planned consolidation in Scarborough was described by unions and community leaders as “deeply worrying” due to the potential impact on local economies and skilled manufacturing clusters in Falkirk and Larbert.

The timing of ADL’s announcement has also raised questions about the effectiveness of prior public funding. The company received over £8 million in Scottish Government funds intended to safeguard jobs and support skills and technological development. Yet, despite such investments, ADL is now planning to cut approximately a third of its Scottish workforce. This development has provoked criticism over the return on public investment and fuelled concerns about the long-term future of bus manufacturing in Scotland.

On a broader scale, the UK Government stresses its commitment to the UK bus manufacturing sector, noting that around 60% of buses funded through its zero-emission regional bus programme come from UK companies. A UK Government spokesperson highlighted a £15.6 billion funding pledge to support local leaders and promote greener transport networks nationwide. The government also cited the establishment of a UK bus manufacturing expert panel aimed at aligning industry efforts with local needs and sustainability goals.

However, calls persist for greater joint action between the Scottish and UK Governments to prevent the loss of key manufacturing jobs in Scotland. The Scottish Parliament’s Economy and Fair Work Committee urged swift cooperation to safeguard the 400 at-risk positions and maintain Scotland’s role in bus production. The unfolding situation represents a critical test of both governments’ ability to support domestic industry amid regulatory constraints and economic pressures.

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Source: Noah Wire Services