Bus firm Alexander Dennis to close Falkirk site with loss of 115 jobs

Bus manufacturer Alexander Dennis has announced a proposal to close its Falkirk plant with the potential loss of 115 jobs.

The move comes six months after the Scottish government announced a furlough scheme aimed at saving the company's operations in Scotland.

Under the new plan, the firm would close its Falkirk facility and convert its Larbert manufacturing facility to a chassis manufacturing site.

The Unite union said the news would come as a "cruel blow to the workforce".

Alexander Dennis said the proposal would safeguard about 200 skilled manufacturing and support jobs "previously at risk of redundancy" and would retain approximately 350 roles within Scotland.

The company said it would enable it to "better align with the current market" and represent the "best possible outcome" in the current climate.

Last September First Minister John Swinney visited the Larbert factory to announce a £4m furlough scheme for workers after Alexander Dennis threatened to shift production to Yorkshire.

Swinney said the support, which offered a reprieve for 400 staff threatened with redundancy, depended on the manufacturer being able to show it had enough orders to sustain operations in Scotland.

The furlough scheme ended earlier this month and the company says it is in discussions with the Scottish government about extending it.

Last week, it was announced that the firm is due to receive orders for more than 100 zero emission vehicles through a Scottish government scheme.

Transport Scotland announced £45m in government money for five bus operators, with Rock Road and Lothian Buses set to purchase from the Falkirk-based manufacturer.

Speaking in Stirling, Swinney said he was "very concerned" by the latest news.

He said: "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, said: "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 said that the UK domestic bus manufacturing sector has lost significant market share in 2025.

More than half (51%) of all zero-emission buses purchased in the UK are sourced from overseas manufacturers, the company said.

Davies said: "We continue to repeat the same calls to both governments to level the playing field, recognise the cost of manufacturing in the UK and the fact that these higher costs flow through the 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 said: "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 said: "The Scottish government remains in regular contact with Alexander Dennis and trades unions and stands ready to discuss all options, across a range of areas, to protect skilled jobs and achieve the best economic outcome for Scotland.

"The company retains the option to evidence a claim for up to £4.1m of Scottish government funding to support its staff furlough scheme, subject to conditions being met.

"No claim has yet been received."