Alexander Dennis, the bus manufacturer, is to keep its Scottish manufacturing sites open and operational.
The company said new orders are in the pipeline following an agreement reached with the Scottish Government and Scottish Enterprise alongside the trade unions.
The agreement saves hundreds of jobs and is based on a £4 million furlough scheme for roles that are required to sustain future manufacturing capacity. The 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.”
Mr Swinney added: ““To access the Scottish Government funding, the company will need to provide evidence of orders that will enable its manufacturing to continue in Scotland. Although the details are commercially sensitive, I am aware Alexander Dennis is working hard to do that.
“This is intended to act as a bridge to a sustainable future for the company in Scotland. During this period, training will also be offered by Scottish Enterprise.
“It is essential we protect the skilled manufacturing jobs we need to build our transition to a green industrial economy.”
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.
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