Latest news with #Larbert
The Independent
09-07-2025
- Business
- The Independent
Committee urges action from Scottish and UK governments to save Alexander Dennis
Immediate action must be taken to ensure bus manufacturing does not end in Scotland, the Scottish and UK governments have been told. Holyrood's Economy and Fair Work Committee urged the administrations north and south of the border to do all they can to stop the closure of Alexander Dennis in Scotland. Some 400 workers are at risk of redundancy as the company proposes moving its manufacturing from Falkirk and Larbert to Scarborough in North Yorkshire. Colin Smyth, the Labour MSP who convenes the committee, has written to Finance Secretary Shona Robison and Scottish Secretary Ian Murray asking them to set out their plans to save the jobs and wider industry. He said the loss of so many highly-skilled job would be 'devastating' to the local community and country as a whole. 'The committee is clear that the situation is so serious that every possible effort must be made to retain these jobs in Scotland,' he told Ms Robison. Alexander Dennis has said it needs up to 100 bus orders this year and up to 400 next year to avoid the closure of its factories in Scotland. Mr Smyth urged the Finance Secretary to explain what she is doing to bring new orders forward and stimulate demand for the sector. He urged Ms Robison to strengthen procurement to ensure that local firms are prioritised. The SNP has come under fire from opposition politicians for the number of Scottish buses being built in countries like China, rather than at home, which they say has contributed to the company's decision to move to England. Mr Smyth also expressed concerns around reports that £20 million in support from Scottish Enterprise for Alexander Dennis to research and develop net-zero buses may no longer result in any vehicles being built in the country. The committee has written separately to Scottish Enterprise over the funding. He said to Ms Robison: 'Given the strategic importance of Alexander Dennis, the high quality of its workforce and the role of manufacturing in Scotland's future economy, it is vital that every possible action is taken to retain manufacturing, and the jobs it provides. 'The committee urges the Scottish Government to do all it can, working with partners at every level, to secure a positive outcome. 'Ministers must act with urgency and ambition to help keep these jobs and avoid a world-class manufacturer shutting its doors in Scotland.' In his letter to the Scottish Secretary, the committee convener described Alexander Dennis's potential loss as 'deeply concerning'. He said co-operation between Westminster and Holyrood would be 'essential if a viable and sustainable future is to be secured for bus manufacturing in Scotland'. He added: 'I know you agree that the potential end of bus manufacturing in Scotland — with the direct loss of 400 jobs and further losses across the domestic supply chain—would be devastating for the area and for Scotland. 'This is all the more concerning given the growing UK and European demand for buses to support climate, transport, and industrial goals.' He said that while a cross-governmental working group on the issue has already met several times, it was 'clear that urgent decisions are required' as the the redundancy consolation process is set to wrap up on August 15 – something that has already been extended by two weeks. Mr Smyth again raised concerns around the procurement process, saying: 'During our evidence sessions, the Committee heard concerns that, in practice, local content is not being adequately recognised or prioritised in the tendering process.' He added: 'The committee understands that the UK Subsidy Control Act does allow social value to be considered when evaluating bids, enables direct awards, and permits some differential treatment in awarding subsidies.' And he asked Mr Murray to set out what action the UK Government is taking to ensure to ensure domestic manufacturing is prioritised. He said: 'Given the scale of potential job losses in Scotland, the importance of maintaining a strong manufacturing base in the UK, and the proven capability of the workforce at Alexander Dennis Ltd, the Committee believes that urgent and coordinated action is essential. 'We therefore urge the UK Government to use every lever at its disposal – particularly through procurement, investment, and industrial strategy — to help secure a future for bus manufacturing in Scotland and protect these skilled jobs.'
BBC News
02-07-2025
- Business
- BBC News
Alexander Dennis extends deadline to save under-threat bus jobs
The bus builder Alexander Dennis (ADL) is to allow more time for efforts to save the jobs of workers in Falkirk and Larbert.A consultation on its plans to end manufacturing in Scotland, which would result in the loss of 400 jobs, will now run for an extra means the new deadline is 15 the Scottish government said officials had met the company to discuss the possibility of a furlough scheme. Alexander Dennis last month announced plans to stop manufacturing in central Scotland. Instead it is proposing to centralise bus building in union Unite had called on the company to extend the mandatory consultation period to allow more time to try to save the Scottish Thomson, the union's Scottish secretary, welcomed the said: "Unite was pushing hard for this extension because it buys more time for proposals to be brought forward which can help secure immediate and long-term orders. "We continue to work with Alexander Dennis and the Scottish government to explore viable options which can retain the skilled workforce at Falkirk and Larbert, including the use of a time-limited furlough scheme supported by government."Staff are currently on a two-week annual break linked to the local holiday in Scottish government said efforts to try to find a solution would continue. Furlough talks In a letter to Holyrood's Economy and Fair Work Committee, Finance Secretary Shona Robison mentioned a time-limited furlough scheme. The aim would be to avoid redundancies before work on new orders confirmed officials had met ADL to discuss a potential company furlough given the green light it would be the business' offer to its employees to prevent compulsory redundancies among the manufacturing scheme would be administered by the said: "We are in discussions with ADL on the potential for the government to support the company's scheme for a defined period."Robison said officials from both the Scottish and UK governments were continuing to meet regularly to discuss the situation. Last week the firm's managing director, Paul Davies, told a Holyrood committee it would need to win orders for at least 70 new buses this year before it could keep its Scottish sites Davies said the company would then need to win 300 additional orders next he warned this alone might not be enough to keep the Falkirk and Larbert operations Scarborough operation has the capacity to produce around 1,200 buses a Davies was asked what it would take to keep production in told the committee the issue was demand and that the company did not have sufficient volume in the order book to sustain two manufacturing sites in the was then asked if the company could give an absolute commitment to keep Falkirk and Larbert open if it secured a sufficient number of new Davies could not give this and said there were wider implications for the company to consider. The extension to the consultation period provides a little breathing space and adds to the possibility the jobs will be it is far too early for anyone fighting to save the jobs to solution will be complex. It is likely to involve the company, unions and both the Scottish and UK particular Alexander Dennis will need to see a pipeline of work big enough to justify both the Scottish and Scarborough operations.A furlough scheme only becomes a realistic proposition if it might bridge a short gap - perhaps three months - until work on new orders begins. Any such scheme would not be designed to run indefinitely.
The Independent
02-07-2025
- Business
- The Independent
Alexander Dennis redundancy consultation extended by two weeks
Alexander Dennis has extended the consultation period with its Scottish workers at risk of redundancy by two weeks. The bus manufacturer has put about 400 jobs at its Falkirk and Larbert factories at risk as it looks to move all operations to Scarborough, North Yorkshire. The consultation process was meant to end at the start of August but has now been pushed back two weeks to August 15. The Finance Secretary welcomed the move, which she said would provide more time for the bus manufacturer to explore all options to save the jobs. In a letter to Holyrood's Economy and Fair Work Committee, Shona Robison said: 'In a positive development, as you may be aware, ADL (Alexander Dennis Limited) have written to inform the Scottish Government that they have extended the consultation period to provide more time to explore all viable options to retain their hardworking staff and facilities at Falkirk and Larbert. 'This welcome decision is a good sign of collaborative working.' Appearing before the committee last week, the company said the closure of the Scotland sites was 'not a done deal'. But managing director Paul Davies said orders for up to 100 buses and changes to regulation are needed before the end of the year. Mr Davies said the firm would need to see consistent orders made to help stabilise the future of the business in Scotland. Asked how many orders the firm would need this year, he said it would be about 70-100 buses by the end of the year and 300-400 for next year. But even if the orders come, there will be a lag before work can begin on manufacturing to allow for design and the acquisition of materials. In her letter to the committee, Ms Robison said the Scottish Government is working 'tirelessly' to find a solution for the company's 400 workers in Scotland, 'and is maintaining close contact with the company, the unions and the UK Government to understand all options to support the workforce'. She told MSPs the English double-decker bus market was 'very critical' for Alexander Dennis, due to the country's larger population than Scotland. She said: 'Local transport authorities and mayoral combined authorities in England must consider the impact of their purchasing decisions on domestic manufacturers, and it is important that the UK Government publishes a future pipeline of orders as soon as possible.' She added: 'The Scottish Government is urgently examining options to provide greater confidence regarding short-term demand for bus manufacturing in Scotland. 'This exploration includes consideration of what can lawfully be done to provide support to the bus manufacturing industry in line with procurement and subsidy control rules.' She said officials had met with the company to discuss a potential future furlough scheme, which the firm would offer to avoid compulsory redundancies. 'We are in discussions with ADL on the potential for the Government to support the company's scheme for a defined period,' she said. 'Officials from both Governments continue to meet regularly on the above matters, through a joint Scottish Government/UK Government working group, which met for the fourth time on June 30. 'Meetings are also taking place between myself and ADL, as well as with Unite and GMB. 'I hope that this update makes clear the importance we have placed on a co-ordinated response. 'We will continue the engagement with UK Government and press them to provide clarity on a number of issues. We will provide a further update in due course.' Last week, staff at Greenfold Systems, a Fife manufacturing plant that supplies parts to Alexander Dennis, were told 90 jobs were at risk of redundancy. The company said it was the result of plans announced by the bus manufacturer – one of Greenfold's major customers – to close its Scottish sites.
BBC News
26-06-2025
- Business
- BBC News
Orders not enough to keep Alexander Dennis in Scotland, says boss
The managing director of struggling bus manufacturer Alexander Dennis has said that hundreds of new orders may not be sufficient to keep its Scottish sites to MSPs, Paul Davies said the company would need to win at least 70 new orders this year and 300 next year to keep its Falkirk and Larbert operations he said this alone may not be enough and he could not commit to keeping the sites company proposed moving operations to Scarborough in England a fortnight ago. However, Mr Davies stressed to Holyrood's economy and fair work committee that the Scottish closures were "absolutely not a done deal".This is the first time that he has spoken publicly since the company announced the is proposing to close Falkirk and cease manufacturing in Larbert with the loss of about 400 jobs. Manufacturing would be centralised at its Scarborough operation which has the capacity to produce around 1,200 buses a year. Mr Davies is the president and managing director of Alexander Dennis. He answered questions for about 90 minutes along with the company's marketing director, Debbie committee convenor Colin Smyth MSP asked him what it would take to keep production in Davies said the issue was demand. He said: "We do not have sufficient volume in the order book to sustain two manufacturing sites in the UK."He was then asked if the company could give an absolute commitment to keep Falkirk and Larbert open if it secured a sufficient number of new Davies could not give such a commitment and said there were wider implications for the company to he stressed the closure of Falkirk and Larbert was "absolutely not a done deal. It's a consultation process." Unions have called for the 45-day consultation process to be extended - the plants are due to shut for two weeks from Fridau because of the local holiday in Falkirk. The company has not ruled this Davies also justified the plan to consolidate activity in Scarborough rather than said Scarborough was a much larger site which was capable of producing the company's whole product range. He said there was not much difference between the Scottish sites and Scarborough when it came to productivity and Davies said: "We spent the best past of last year spending £8m transforming Larbert. We would never have made that investment had we expected this situation to have unfolded."Ms McCreath said Larbert was only designed to build double deck buses while Scarborough could also build single deck also said that Larbert was a production line but did not have the complete finishing facilities the company would require. Bus firm raised in Commons The company said it first informed the Scottish and UK governments on 23 May that it was considering consolidating work in proposal, Mr Davies said, was entirely from the company's executive team in the UK. He also said the company had not made a profit since and government ministers have discussed the possibility of a time-limited furlough scheme to allow the company time to win new orders which could be produced at Falkirk and Dennis was also raised in the House of UK transport minister told the Commons it was really important that governments at all levels support British manufacturing as concern grew over the future of Alexander Dennis in Lightwood MP said his officials have been in close contact with the company over its comments came after Labour's Alloa and Grangemouth MP, Brian Leishman, said changes to policy and legislation could save the jobs.
BBC News
12-06-2025
- Business
- BBC News
Swinney 'deeply concerned' over Alexander Dennis job cuts
The first minister has said the Scottish government will do "everything it can" to support workers at bus manufacturer Alexander Swinney said he was "deeply concerned" the firm was planning to move its full operation to a site in Scarborough, North Yorkshire, putting 400 jobs at factories in Falkirk and Larbert at he faced criticism from Scottish Labour leader Anas Sarwar, who claimed his government had ordered more buses from China than it had from the said most bus ordering decisions in Scotland were made by private operators, and the government had to comply with state subsidy rules in the way it supported businesses. At First Minister's Questions Swinney said: "This issue has been occupying a great deal of the focus and the attention of the deputy first minister and I and the UK government ministers since we became aware of the situation over the last few weeks, and then ultimately to the decision that was announced yesterday."He quoted a joint letter from the UK and Scottish governments, which pledged to "work closely with Alexander Dennis at this challenging time". Alexander Dennis (ADL) cited strong competition from the China, which has seen its market share grow from 10% to 35%, among its reasons for the firm also criticised UK policy, and called for jobs and local economic benefit to be factored in when taxpayers money is invested. Earlier Greater Manchester mayor Andy Burnham pointed to an order of 160 ADL buses for the publicly-owned "Bee Network" in the city, and questioned why the Scottish government could not do the same. In a statement, Burnham - who has previously visited the Falkirk site - said: "Our iconic Bee Network buses are a bit of Scotland right here in Greater Manchester."We have over 160 Alexander Dennis buses criss-crossing our city-region every day - connecting our communities to opportunity."If Greater Manchester can invest in world-class Scottish bus manufacturing, then why can't the SNP Scottish government?"Sarwar claimed the Scottish government had secured just 44 buses from ADL as part of the Scottish Zero Emission Bus Challenge Fund (ScotZEB) scheme last fund was initially established in 2022 to "disrupt the bus and coach market" and allow operators the chance to make the move to zero-emission vehicles. Sarwar said that number was "five times" less than the number of buses ordered by Greater that figure only covered the second phase of the first phase, in which 276 buses were procured at a cost of about £62m, saw 137 buses ordered from additional 116 buses were ordered from Chinese manufacturer Yutong, while the rest were built in the UK, Ireland and predecessor, known as the Scottish Ultra-Low Emission Bus Scheme, also saw 207 electric buses ordered from ADL by operators between September 2020 and March 2021. Swinney said state aid regulations - in the form of the UK-wide Subsidy Control Act - prevented the government from directly procuring from a single Scotland, most public service buses are procured by private operators, who then run them on routes across the said: "What I am doing, what the deputy first minister is doing, is how can we find a way in which we can remain legally compliant with the Subsidy Control Act and enable these obstacles to be overcome?"We are going to do everything we can to find a way through the Subsidy Control Act provision, so the government can continue to work within the law, and so we can support manufacturing in Scotland."
