Alexander Dennis Proposes Falkirk Plant Closure
Bus manufacturer Alexander Dennis has announced a proposal to close its Falkirk plant, which could result in the loss of 115 jobs.
This announcement follows six months after the Scottish government introduced a furlough scheme designed to preserve the company's operations in Scotland.
Under the new proposal, Alexander Dennis plans to close its Falkirk facility and convert its Larbert manufacturing site into a chassis manufacturing operation.
The Unite union described the news as a "cruel blow to the workforce."
Alexander Dennis stated that the proposal would protect approximately 200 skilled manufacturing and support jobs "previously at risk of redundancy" and retain around 350 roles across Scotland.
The company emphasized that this plan would allow it to "better align with the current market" and represents the "best possible outcome" given the current economic climate.
Last September, First Minister John Swinney visited the Larbert factory to announce a £4 million furlough scheme for workers after Alexander Dennis threatened to relocate production to Yorkshire.
Swinney noted that the support, which provided a reprieve for 400 staff facing redundancy, was contingent on the manufacturer demonstrating sufficient orders to sustain operations in Scotland.
The furlough scheme concluded earlier this month, and Alexander Dennis is currently in discussions with the Scottish government regarding a possible extension.
Last week, it was announced that Alexander Dennis is expected to receive orders for over 100 zero-emission vehicles through a Scottish government initiative.
Transport Scotland revealed £45 million in government funding allocated to five bus operators, with Rock Road and Lothian Buses set to purchase vehicles from the Falkirk-based manufacturer.
Speaking in Stirling, John Swinney expressed his concern about the recent developments.
"We've just allocated an award of 100 new buses to take forward the work of the company.
Obviously, there are some significant issues around about procurement issues that remain outstanding that have to be resolved by the United Kingdom government and I would encourage the UK government to fulfil their promises and their commitments to Alexander Dennis by reforming those arrangements in relation to procurement.
We'll work with the company to secure continuity of employment as far as we can do so in working to secure the future of the plant."
Paul Davies, Alexander Dennis president and managing director, expressed gratitude for the Scottish government's furlough scheme support.
"We remain grateful to the Scottish government for the furlough scheme support to secure these jobs, maintaining skills and manufacturing capability in central Scotland.
We will continue to work with the Scottish government, its agencies and the trade unions to support staff during the consultation period."
Alexander Dennis highlighted that the UK domestic bus manufacturing sector experienced a significant loss of market share in 2025.
According to the company, more than half (51%) of all zero-emission buses purchased in the UK are sourced from overseas manufacturers.
Davies reiterated calls to both the UK and Scottish governments to level the playing field and acknowledge the higher costs of manufacturing in the UK, which affect the entire supply chain.
"Manufacturing in this country needs to be better supported if we are to generate the economic benefit that the country so badly needs."
Sharon Graham, Unite union general secretary, reacted strongly to the announcement.
"The announcement by Alexander Dennis that over a hundred highly-skilled manufacturing jobs will be axed at Falkirk and Larbert is shattering.
It is an economic shock which the company has chosen to inflict on the workforce and the wider community when it has other viable options. This doesn't need to happen."
A Scottish government spokesperson stated that officials remain in regular contact with Alexander Dennis and trade unions and are prepared to discuss all options to protect skilled jobs and achieve the best economic outcome for Scotland.
The spokesperson added that the company retains the option to claim up to £4.1 million of Scottish government funding to support its staff furlough scheme, subject to conditions being met, but no claim has yet been received.
