Fears over workforce cuts as Falkirk bus builder takes new strategy route
Bus builder Alexander Dennis announced it is consulting on a new approach aimed at securing its Scottish manufacturing operations and safeguarding jobs – although it admitted as many as 115 staff could face the axe.
The proposals would see Alexander Dennis convert its Larbert manufacturing facility to a “chassis manufacturing site”, supporting all of its low-emission and zero-emission bus products.
The company would also close its legacy Camelon facility, aligning with its long-standing plans to exit that site.
According to the firm, which is a subsidiary of NFI Group Inc, the proposal would safeguard around 200 skilled manufacturing roles and support jobs previously at
risk of redundancy, while retaining around 350 roles within Scotland.
However, the company also revealed the new strategy could place as many as 115 roles at risk of “potential redundancy”.
Alexander Dennis stated it would “retain the flexibility” to reintroduce bus body manufacturing to its Larbert facility at a later date enabling the company to respond positively to future needs.
The company previously proposed closing both of its Scottish manufacturing sites in Camelon and Larbert with up to 400 jobs at risk of redundancy.
In September last year, Alexander Dennis and the Scottish Government agreed a first-of-its-kind furlough scheme aimed at protecting jobs and long-term
manufacturing capacity in Scotland, which has enabled the company to propose a different outcome for its Scottish manufacturing colleagues.
Paul Davies, Alexander Dennis president and managing director, said: “We are proposing to retain jobs and restart manufacturing at Larbert with a focus on chassis
manufacturing. This represents the best possible outcome for our business, employees, customers and supply chain partners in the current climate.
“This new approach would enable us to better align with the current market whilst improving our efficiency. It also allows us to continue to adapt to rapidly changing and challenging market dynamics.
“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.
“We are absolutely committed to doing the right thing by our team members and our stakeholders to protect jobs, invest in our business and maintain strategically important manufacturing capability in Scotland.”
According the Alexander Dennis, the UK domestic bus manufacturing sector has lost significant market share in 2025, with 51 per cent of all zero-emission buses purchased in the UK sourced from overseas manufacturers – an increase of 25 percentage points from 2024.
These increased purchases from non-UK bus manufacturers have occurred even as UK taxpayer funded contributions in the industry increased.
It states recent government interventions have also fallen far short of the bold and decisive action the industry needs.
Mr Davies said: “The output of the UK Bus Manufacturing Expert Panel does not place enough focus on the significant jobs and economic contribution the domestic bus manufacturers make to the UK.
“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 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 the country so badly needs.”