Alexander Dennis Production Move to Scarborough Called Off

The bus manufacturer Alexander Dennis will not consolidate its operation to Scarborough and will keep its Scottish sites open.

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Alexander Dennis (AD) had planned to close its facilities in Falkirk and Larbert, with 400 jobs at risk, and to move all bus body manufacturing to its site in Scarborough.
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However, a £4m furlough agreement with the Scottish Government will allow the company to bring its manufacturing back online in Scotland.
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AD, the world’s largest manufacturer of double-decker buses and Britain’s biggest bus builder, has blamed increased competition from Chinese electric bus manufacturers for the need to make cuts.

The company says the proposal was made possible through" the advocacy and intervention of the Scottish Government and Scottish Enterprise, combined with the company’s trade union partners taking a constructive, solution-focused approach".

A key element in creating this viable path forward for Alexander Dennis’s Scottish manufacturing operations is a furlough scheme for roles that are required to sustain future manufacturing capacity. This scheme will run for 26 weeks to enable the required lead-times to get manufacturing back online.

Scottish First Minister John Swinney confirmed the support from the Scottish Government in a speech to workers as part of a visit to Alexander Dennis’s Larbert site today, alongside key stakeholders including Scottish Enterprise.

Alexander Dennis has seen increased demand for its single and double-deck buses in recent weeks, and the company is confident in the placement of further orders to support Scottish manufacturing. Details of this remain commercially sensitive at this stage.

Paul Davies, Alexander Dennis President & Managing Director, said:

“We are deeply grateful for the Scottish Government’s commitment to preserving jobs, skills, and industrial capability in the region.

“Today’s announcement marks a turning point. The Scottish Government’s support allows us to propose a new outcome to our statutory consultation today. 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 decision saves hundreds of jobs within Alexander Dennis and supports our 1,000 suppliers throughout the UK.

“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 said: “

This welcome announcement signals a strong commitment to supporting and retaining vital Scottish manufacturing expertise in an important, growing market.

“We’ve reached this outcome through partnership working at its best, and I’d like to thank everyone involved for their dedication. Scottish Enterprise looks forward to working with the company to build a successful future in Scotland.”

Alexander Dennis’s original consultation process was launched in June in response to a rapidly changing competitive landscape. The proposal announced today allows manufacturing operations in Scotland to continue and significantly limits the expected role reductions.

However, to improve its competitive position, Alexander Dennis continues to propose further changes to its business structure, with expectations that 11 roles not directly linked to Scottish manufacturing remain at risk of redundancy in the ongoing statutory consultation.

Around 700 people are employed in manufacturing and non-manufacturing roles at AD’s Scarborough facility.

Scarborough and Whitby’s MP - Alison Hume - said it was “vital that we support UK bus manufacturing by buying British buses” and called for public sector procurement to be “strengthened as soon as possible to include social value”.
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The MP said:

“It is really good news for the Scottish workforce and investment in the company that Alexander Dennis’s manufacturing sites in Scotland are remaining open and operational.

“The furlough scheme will give the company time to secure new orders, which will also benefit the main factory in Scarborough, which employs over 700 people.”

Speaking to the Local Democracy Reporting Service (LDRS), she added:

“Alexander Dennis has been warning about various threats to their business, such as competitive imbalance, the increasing market share of Chinese manufacturers and an absence of incentives for British-built vehicles.”

Euan Stainbank, the MP for Falkirk, said the furlough scheme was “a huge win for the workers at Alexander Dennis in Falkirk”.
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He added:

“I’ve fought from day one for the sector as Falkirk’s MP and Co-Chair of the British Buses APPG, challenging procurement failures, pushing for a reliable pipeline of orders and policy change.

“This result proves what can be achieved when government, industry, and unions work together – rather than neglecting our domestic sector.”

The company said it had seen “increased demand for its single and double-deck buses in recent weeks, and is confident in the placement of further orders to support Scottish manufacturing”.

Both MPs have backed changes to procurement rules, with Ms Hume previously asking the chancellor to “use public procurement to back British companies such as Alexander Dennis to boost economic growth”.

Speaking to the LDRS, she added:

“This way we will reward local employment, skills development and sustainable practices as well as growing the UK economy.”