Alexander Dennis Announces Major Restructuring with Falkirk Site Closure
Bus manufacturer Alexander Dennis has unveiled a significant restructuring plan that includes the proposed closure of its Falkirk site and the conversion of its Larbert manufacturing facility. This move places up to 115 jobs at risk of redundancy, according to company statements released on Tuesday, 31 March 2026.
Proposed Changes to Safeguard 200 Jobs
Despite the potential job losses, the company emphasised that the proposal would safeguard approximately 200 skilled manufacturing and support positions that were previously under threat. The restructuring aims to better align the business with current market demands and improve operational efficiency.
Paul Davies, Alexander Dennis president and managing director, stated: "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."
Background of Government Intervention
The announcement follows previous intervention by the Scottish Government in 2025, which funded a furlough scheme for Alexander Dennis staff after the firm considered consolidating operations at a single site in Yorkshire. That earlier proposal had put about 400 jobs at risk, with approximately 85 employees having since left the business.
The Larbert facility is set to be converted into a chassis manufacturing site that will support all of Alexander Dennis's low-emission and zero-emission bus products. Meanwhile, the Falkirk facility would cease operations entirely under the current proposal.
Industry Challenges and Government Response
Alexander Dennis highlighted significant challenges facing the UK domestic bus manufacturing sector, noting that more than half (51%) of all zero-emission buses purchased in the UK are sourced from overseas manufacturers. The company has repeatedly called for government action to level the playing field for domestic manufacturers.
Mr Davies added: "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 that 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 that the country so badly needs."
Political Reactions and Criticism
First Minister John Swinney expressed concern about the developments, noting that the Scottish Government had recently allocated funding for 100 new buses from Alexander Dennis. He called on the UK Government to reform procurement arrangements to support domestic manufacturers.
Scotland's Deputy First Minister Kate Forbes urged action from Westminster, stating: "It is vital that the UK Government ensures a long-term pipeline of orders and a supportive approach to reserved matters such as subsidy and procurement. A first step would be changes to the Subsidy Control Act 2022 in order to create that pathway for procurement reform."
Opposition politicians were more critical of the Scottish Government's handling of the situation. Scottish Labour leader Anas Sarwar described the news as "devastating" and criticised what he called the SNP's "failure on buses." Scottish Liberal Democrat candidate Lucy Smith questioned why Scottish Government funding was supporting Chinese manufacturers while Scottish jobs were being lost.
Union Response and Government Statements
Trade unions reacted angrily to the proposals. Unite general secretary Sharon Graham called the news "shattering" and "an economic shock which the company has chosen to inflict on the workforce and the wider community when it has other viable options."
GMB senior organiser Robert Deavy questioned the wisdom of sending contracts overseas, asking: "How many Scottish jobs must be lost and factories closed before our governments understand the risks of sending contracts around the world?"
A Scottish Government spokesperson confirmed ongoing discussions with the company and trade unions, noting that Alexander Dennis retains the option to claim up to £4.1 million in government funding for its staff furlough scheme, subject to conditions being met.
A UK Government spokesman highlighted the country's leadership in bus manufacturing, stating: "The UK is a global leader in bus manufacturing, with around 60% of buses funded through our zero-emission bus programme built by UK-based companies, supporting skilled jobs and a cleaner transport network."
The consultation period for the proposed changes is now underway, with the company pledging to work with government agencies and trade unions to support affected staff during this transitional period.
