Alexander Dennis’ Falkirk site has been put up for sale as the bus manufacturer consults on proposals to shut Scottish operations.
Due to financial concerns, the company is considering moving away from the Larbert location to a single site in Yorkshire, potentially putting 400 jobs at risk.
The manufacturers made a “significant investment” to expand the Falkirk location during 2023 and 2024. The company states although the Larbert location is listed for sale, a “final decision” is still to be made
A spokesperson for Alexander Dennis said: “This does not represent a foregone conclusion and a final decision has not yet been made.
“We have been honest with stakeholders about the need to address the condition of the Falkirk site for some time, which is why significant investment was made to expand our Larbert site for vehicle manufacturing during 2023 and 2024.
“Alexander Dennis continues to engage with governments in good faith and the company remains committed to exploring all possible outcomes at this time.”
STV NewsFife-based bus manufacturer Greenfold Systems Ltd in Dunfermline has already entered administration and made 81 employees redundant as a knock-on effect of Alexander Dennis’ plans to pull out of Scotland.
The company employed a total of 90 staff, with nine staying on a short-term basis to complete a customer contract.
Finance secretary Shona Robison previously said the Government is committed to looking at “all viable options” and ministers are working with private bus companies to drum up interest for much-needed orders.
She also suggested Alexander Dennis could be forced to pay back money it has been given by the Government’s commercial arm Scottish Enterprise for skills and technological development, though it would be for the agency to decide how to proceed.
The finance secretary also stressed the issues the Government faces due to UK-wide state aid regulations, which govern the level to which ministers can intervene in private businesses.
STV NewsRobison said the Subsidy Control Act does not allow for subsidies which enforce the use of domestically-made goods and services, which would hamper the Scottish Government’s efforts to force bus firms to use Alexander Dennis.
Deputy First Minister Kate Forbes said: “We are working constructively with Alexander Dennis Ltd, the unions, the wider public transport sector and the UK Government on supporting and expanding the market for electric buses.
“This is all aimed at securing and creating jobs, helping to meet our climate targets and providing a sustainable future for the bus manufacturing industry, which plays an important role in the Scottish and UK economies.”
A UK Government spokesperson said: “The UK is a global leader in bus manufacturing, and around 60% of buses funded through our zero-emission regional bus programme are being built by UK-based companies, supporting jobs and a greener transport network.
“Alexander Dennis has a strong future in the UK’s growing zero-emission bus market. Through the spending review, we have committed £15.6bn to local leaders to boost services and green fleets across the UK.
“We’re also giving regional leaders and leading manufacturers a voice on zero-emission plans, through the UK bus manufacturing expert panel, which seeks to put local people at the heart of bus building.”
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