Bus manufacturing by Alexander Dennis in Scotland looks set to continue after the company worked with partners including the Scottish Government, Scottish Enterprise and trade unions on plans to keep plants at Falkirk and Larbert open.
In June, the NFI Group subsidiary had proposed the closure of Falkirk and suspension of production at Larbert in the face of what it said were insufficient orders to maintain bus building in Scotland. All such activity was to be moved to the Alexander Dennis factory in Scarborough as a result.
Since then, the company has repeatedly extended a statutory consultation on those plans, which have come under heavy scrutiny from the Scottish Government.
Under the revised approach announced on 15 September, both Falkirk and Larbert will remain “open and operational,” Alexander Dennis says. It notes how a 26-week furlough scheme for staff in roles that sustain future manufacturing capacity is key to the shift.
First Minister John Swinney confirmed the Scottish Government’s support for that scheme in a speech to workers at the Larbert site on 15 September. The proposals had put up to 400 jobs at risk.
Alexander Dennis adds that demand for its single- and double-deck buses has increased in recent weeks and that it is now confident of further orders being placed, although further details of those are not yet being revealed.
President and Managing Director Paul Davies says the announcement of a continuation of bus manufacturing in Scotland “marks a turning point.” He adds that support from the Scottish Government “allows us to propose a new outcome to our statutory consultation today.”
Mr Davies continues: “Together with our team members’ acceptance of new terms and conditions through the trade union ballot, and the confidence we have in securing new orders, we will be able to keep our manufacturing sites in Larbert and Falkirk open and operational.
“This has been made possible by collaboration, determination, and a shared belief in the value and future of domestic manufacturing, which is a critical driver of Scotland’s economy.”
Scottish Enterprise Chief Executive Adrian Gillespie says the outcome has been reached “through partnership working at its best” and has thanked all involved for their dedication.
While the revised position “significantly limits” the number of potential job losses, Alexander Dennis says that 11 other roles not directly linked to bus manufacturing in Scotland remain at risk of redundancy under the statutory consultation.
