400 jobs at risk as Alexander Dennis plans closure of Falkirk factory
All bus body production would move to Scarborough
One of Falkirk’s biggest employers is planning to shut its manufacturing site, putting around 400 jobs at risk.
Bus manufacturer Alexander Dennis, a subsidiary of global firm NFI Group, has announced it is entering a formal consultation over proposals to close its factory in the town. The move is part of a major restructuring of its UK operations and would see all bus body production moved to Scarborough in England.
The company says the changes are aimed at reducing costs and increasing efficiency, following what it calls “changing and challenging market dynamics.”
If the plans go ahead, the Falkirk facility - which has already seen its operations scaled back in recent years - would be permanently closed. Production at the nearby Larbert site would also be suspended once current orders are completed.
The company has stressed that this is still a proposal, with consultation now under way. However, it confirmed that up to 400 jobs across the business are at risk - around 22% of its total workforce.
Paul Davies, President and Managing Director of Alexander Dennis, said the company must take “significant action” to remain 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,” he said.
“We are extremely proud of our UK history and legacy dating back to 1895 and firmly believe in our people, products and business. But we must drive efficiency to secure financial sustainability.”
The move would be a major blow for the local economy. The firm has been a key employer in Falkirk for decades and has deep ties with suppliers across Scotland and the wider UK.
Davies added that UK Government policy currently offers little support or incentive to retain manufacturing jobs in Britain, calling for future legislation to better reward firms that invest in local supply chains and domestic employment.
Alexander Dennis says it has spent over £1 billion with UK suppliers in the last five years, but warns the impact of this restructure could ripple through the wider supply chain - with every manufacturing job estimated to support up to four others.
Responding to the proposed closure, Deputy First Minister Kate Forbes said: “This will be a hugely worrying time for the workforce at Alexander Dennis, their families, and the wider community.
“In recent weeks, the Scottish Government has engaged extensively with Alexander Dennis and its parent company NFI to understand the issues and ensure every possible avenue is explored to avoid redundancies. This has included discussions involving myself, the First Minister, Scottish Enterprise, Transport Scotland and the UK Government.
“We will continue to examine all options during the consultation period to help retain jobs and safeguard manufacturing operations in Falkirk and Larbert.
“Should any job losses occur, the Scottish Government will offer support through our Partnership Action for Continuing Employment (PACE) initiative.”