Alexander Dennis plans to close Falkirk site with loss of 115 jobs

Bus manufacturer Alexander Dennis has announced plans to shut down its Falkirk plant, which could result in the loss of 115 jobs. This development comes after earlier indications that the company intended to move production to Yorkshire, a move that jeopardized up to 400 positions across its Falkirk and Larbert operations. Currently, Alexander Dennis plans to convert its Larbert facility into a chassis manufacturing site while closing the Falkirk factory altogether.

The company emphasized that this new proposal would preserve approximately 200 skilled manufacturing and support jobs that were previously at risk of redundancy. However, it also highlighted that despite these efforts, 115 roles would still be lost. Unite, the union representing these workers, described the announcement as a “cruel blow to the workforce,” reflecting deep concern about the impact on employees.

Last September, First Minister John Swinney visited the Larbert site to unveil a £4 million furlough scheme designed to protect 400 jobs from redundancies. Swinney emphasized that continued support depended on the company demonstrating sufficient orders to maintain operations in Scotland. Although this furlough scheme ended earlier this month, Alexander Dennis is reportedly in discussions with the Scottish government regarding a possible extension. In related news, the company recently secured orders for over 100 zero-emission buses through a government-backed initiative. Transport Scotland allocated £45 million to five bus operators, including Rock Road and Lothian Buses, who plan to purchase vehicles from the Falkirk-based manufacturer.

Expressing his concerns about the situation, Swinney pointed to unresolved issues related to procurement that require action by the UK government. He urged, “I would encourage the UK government to fulfil their promises and their commitments to Alexander Dennis by reforming those arrangements in relation to procurement.” He also pledged ongoing efforts to “secure continuity of employment as far as we can do so in working to secure the future of the plant.” Meanwhile, Alexander Dennis president and managing director Paul Davies thanked the Scottish government for its furlough support, stating, “We remain grateful to the Scottish government for the furlough scheme support to secure these jobs, maintaining skills and manufacturing capability in central Scotland.” He also confirmed that the company aims to retain about 350 roles in Scotland and described the restructuring as a way to better align with the current market, calling it the “best possible outcome” under challenging conditions.

The company pointed out that the UK’s domestic bus manufacturing sector had experienced a decline in market share in 2025, with over half of zero-emission buses being sourced from overseas manufacturers. Davies reiterated a call for both UK and Scottish governments to “level the playing field” by acknowledging the higher manufacturing costs within the UK and supporting domestic production more effectively. Sharon Graham, general secretary of Unite, described the news as “shattering,” criticizing the company’s decision and stressing that “this doesn’t need to happen.” Likewise, Robert Deavy of GMB Scotland expressed frustration at what he sees as government failures to secure essential contracts for Scottish manufacturing, asking, “How many Scottish jobs must be lost and factories closed before our governments understand the risks of sending contracts around the world?”

The Scottish government stated it is actively engaged with Alexander Dennis and trade unions, prepared to explore all options to protect skilled jobs and secure the best economic outcomes for the region. A spokesperson confirmed the company retains the opportunity to claim up to £4.1 million for its staff furlough scheme, yet noted no such claim has been made so far. The UK government stressed that the UK remains a world leader in bus manufacturing, highlighting a £15.6 billion commitment in the spending review to help local leaders improve transport infrastructure and support the transition to greener buses. They also pointed out that an expert panel has taken steps to stabilize the market by offering greater certainty to the industry.

Looking at the broader context, this announcement signifies a significant job loss in the Falkirk area, adding to recent economic challenges such as the closure of the Grangemouth refinery. However, the situation is somewhat less severe than initially feared last summer when Alexander Dennis planned to cease all manufacturing in Falkirk and Larbert, resulting in approximately 400 job losses. Although the current proposal still falls short of the unions’ goals, it represents a partial retention of roles. The Scottish government’s furlough scheme aimed to save jobs entirely rather than merely reduce job losses, yet no claim for furlough funds has been made by the company. Reports suggest that Alexander Dennis will not seek furlough reimbursements for the affected employees, further frustrating unions that are hopeful there may still be ways to influence the company’s decision on job cuts

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