Alexander Dennis has proposed closure of its manufacturing site in Falkirk and the consolidation of UK bodybuilding activities at the Scarborough plant. Production lines at Larbert would also be “suspended” after completion of current contracts under the plans.
Those changes form part of what the NFI Group subsidiary says is “a detailed business review” and are “intended to adjust the business to changing market dynamics.” If adopted, they will lower costs, deliver clearer responsibilities, and increase efficiencies by removing duplicate functions and activities, the business continues.
A realignment of UK manufacturing by Alexander Dennis was hinted at in NFI Group’s Q1 2025 financial results, which noted expectations “for further cost reduction activities in the near-term” at the UK business.
A consultation on the plans puts up to 400 jobs at risk, which is around 22% of the Alexander Dennis workforce. The business says that alongside its new manufacturing strategy, it will change the structure and management of key customer support teams “to drive a clearer focus on quality and reliability, delivery to targets, and communications.”
President and Managing Director Paul Davies adds that the proposals will underpin financial sustainability and lower operating costs in the face of changing and challenging market dynamics.
“Together with our parent NFI Group, we are extremely proud of our UK history and legacy dating back to 1895 and firmly believe in our people, products and business,” he says.
“We must take significant action to drive efficiency to allow our operating model to be competitive. It is extremely regrettable that as part of this, we must place jobs at potential risk of redundancy and propose to cease manufacturing operations at some of our facilities.”
Mr Davies has again criticised UK policy around bus procurement. He notes that it currently “does not allow for the incentivisation or reward of local content, job retention and creation” and nor does it “encourage any domestic economic benefit.”
He adds how Alexander Dennis has warned of such a position for some time and wants to see both policy and legislative change that incentivise the delivery of local benefit where taxpayer money is invested.
“It is our hope that the forthcoming industrial strategy will provide reassurance that there is value in manufacturing within the borders of the UK and we remain hopeful of policy and legislative changes that increase the UK’s focus on support for domestic manufacturing.
“Our new strategy would allow us to respond appropriately to increase local production if structure changes are made.”
The planned end of manufacturing in Scotland by Alexander Dennis comes less than five years after the conclusion of chassis production in Guildford, which was moved to Falkirk.
