Moving south: Bus firm enters into relocation consultation and looks to close down Falkirk operations
Over 400 jobs are now at risk after Alexander Dennis announced it is entering into a consultation on a new strategy for its UK manufacturing operations which will see it move to a single base in Scarborough.
This means its Scottish based manufacturing operations in Camelon and Larbert, which have already been reduced in recent years, would be discontinued and the sites closed.
Production lines would be suspended upon the completion of current contracts.
The statutory consultation places up to 400 roles at Alexander Dennis at potential risk of redundancy. This represents approximately 22 per cent of Alexander Dennis’ workforce.
The company expects a follow-on impact in its domestic supply chain, where it has spent over £1 billion in the last five years with its 1000 suppliers in all parts of the UK.
For every job in bus manufacturing, there is a multiplier of three to four jobs in the wider supply chain and support services.
Alongside the new manufacturing strategy, Alexander Dennis is making changes to the structure and management of key customer support teams to drive a clearer focus on quality and reliability, delivery to targets, and communications.
Paul Davies, Alexander Dennis president and managing director, said: “We are proposing a new UK manufacturing strategy to underpin financial sustainability and lower operating costs in the face of changing and challenging market dynamics.
“Together with our parent NFI Group, we are extremely proud of our UK history and legacy dating back to 1895 and firmly believe in our people, products and business.
"We must take significant action to drive efficiency to allow our operating model to be competitive. It is extremely regrettable as part of this, we must place jobs at potential risk of redundancy and propose to cease manufacturing operations at some of our facilities.
“While stakeholders have been sympathetic of the situation, the stark reality is that current UK policy does not allow for the incentivisation or reward of local content, job retention and creation, nor does it encourage any domestic economic benefit.
"We have warned of the competitive imbalance for some time and would like to see policy and legislative changes that incentivise the delivery of local benefit where taxpayer money is invested.
"We strongly believe funding that supports public transport should lead to investment in local jobs, domestic supply chains, technology creation and a recurrent tax base.
“It is our hope the forthcoming industrial strategy will provide reassurance that there is value in manufacturing within the borders of the UK and we remain hopeful of policy and legislative changes that increase the UK’s focus on support for domestic manufacturing.
"Our new strategy would allow us to respond appropriately to increase local production if structural changes are made.”
Responding to new of the consultation, Falkirk MP Euan Stainbank said: “I will exhaust every option to make sure this threat to Scotland’s century long history of bus manufacturing does not get lost to the industrial failure that this consultation constitutes.
"My sole priority in for the period of the consultation is to fight for the jobs of the bus manufacturing workers in my town. I will continue to work tirelessly with the company and UK Government to advocate for solutions that maintain bus manufacturing in Falkirk."
Elected representatives and other officials joined Mr Stainbank’s sentiments.
Falkirk Council leader Cecil Meiklejohn said: “On behalf of the council I would like to say how devastated we are by this announcement from Alexander Dennis.
“Our immediate concern is with the valued workforce and their families who have been the bedrock of bus production in Scotland, and who will no doubt be distressed by this news.
“I have asked our officers to immediately engage with the Partnership Action for Continuing Employment (PACE), led by Skills Development Scotland, to begin the process of supporting the employees with the range of practical advice, skills development, and training support available to them, at this difficult time.
“This announcement is another illustration that manufacturing in the UK is in crisis.
"High energy prices and carbon taxes are making our major industries uncompetitive with the rest of the world, and if something isn’t done by the UK Government in the near future then we will continue to see closures like this up and down the UK.
“Falkirk and Grangemouth remain outstanding locations for industrial activity due to the highly skilled local workforce and unrivalled transport and logistical infrastructure.
"What we need now is an economic environment that supports rather than hinders our local companies to grow and be successful.”
Falkirk MSP Michael Matheson added: “This is a further blow to Scotland’s economy and manufacturing capacity – and it is a major concern for the workforce who are facing potential redundancy.
“My thoughts are with the workers and their families – they have faced continued uncertainty for some time, and this announcement adds significantly to that.
"Both the UK government and Scottish Government should be working together to ensure that this decision can be reversed and provide security for the workforce and their families.
“However, the UK government must come to the table now and level the playing field for manufacturing in Scotland, given the increasing disadvantage UK bus manufacturers face from international competition.
"ADL’s calls have, so far, been ignored and the result of that ignorance is jobs being lost. This is exactly what the workers of ADL are facing today.
“It is simply not good enough. My constituents, their families, and businesses deserve better.”
Central Scotland MSP Richard Leonard said: "Proposals by Alexander Dennis to consult on the possible closure of its operations in Falkirk and Larbert are shocking.
"To discontinue manufacturing at these sites would be a further devasting blow to the local and national economy.
"After their failure to act quickly enough over the Grangemouth refinery, the UK and Scottish and governments must not make the same mistakes again.
"They need to work closely with Unite and GMB, step in, save the 400 jobs at risk here and retain largescale bus production in Scotland."