Alexander Dennis to shut Falkirk site and convert another with 115 jobs at risk

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Bus firm Alexander Dennis is proposing to shut its Falkirk site and convert its Larbert manufacturing facility, with up to 115 jobs at risk of redundancy.

However, the company said the proposal would safeguard about 200 skilled manufacturing and support jobs which were previously at risk of redundancy.

The company said the proposals would enable it to “better align with the current market” and represent the “best possible outcome” in the current climate.

It comes after the Scottish Government in 2025 stepped in to fund a furlough scheme for staff at Alexander Dennis after the firm announced it was considering consolidating its operations at a single site in Yorkshire, putting about 400 jobs at risk.

It is understood that about 85 employees have since left the business.

Alexander Dennis has now announced it is consulting on plans to convert its Larbert manufacturing facility to a chassis manufacturing site, supporting all of its low-emission and zero-emission bus products, while the company would close its facility in Falkirk.

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.”

Alexander Dennis said that the UK domestic bus manufacturing sector has lost significant market share in 2025.

More than half (51%) of all zero-emission buses purchased in the UK are sourced from overseas manufacturers, the company said.

Mr Davies said: “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.”

Last week, it was announced that Alexander Dennis Limited (ADL) is due to receive orders for more than 100 zero emission vehicles through a Scottish Government scheme.

Transport Scotland announced £45 million in Government cash for five bus operators, with Rock Road and Lothian Buses set to purchase from the Falkirk-based manufacturer.

Responding to news of the consultation, a Scottish Government spokesperson said: “The Scottish Government remains in regular contact with Alexander Dennis and trades unions and stands ready to discuss all options, across a range of areas, to protect skilled jobs and achieve the best economic outcome for Scotland.

“The company retains the option to evidence a claim for up to £4.1 million of Scottish Government funding to support its staff furlough scheme, subject to conditions being met. No claim has yet been received.”

The UK Government has been asked for comment.