Bus maker Alexander Dennis, a subsidiary of Toronto-listed NFI Group Inc, said on Monday it intends to keep its Scottish manufacturing sites in Larbert and Falkirk open and operational “following intensive engagement with internal and external stakeholders.”
Alexander Dennis said this has been made possible “through the advocacy and intervention of the Scottish Government and Scottish Enterprise, combined with the company’s trade union partners taking a constructive, solution-focused approach.”
The firm said a key element in creating this viable path forward for Alexander Dennis’s Scottish manufacturing operations “is a furlough scheme for roles that are required to sustain future manufacturing capacity.”
This scheme will run for 26 weeks to enable the required lead-times to get manufacturing back online.
Scottish First Minister John Swinney confirmed the support from the Scottish Government in a speech to workers as part of a visit to Alexander Dennis’s Larbert site, alongside key stakeholders including Scottish Enterprise.
The Scottish Government said a package has been announced to support the retention of manufacturing jobs at Alexander Dennis in Scotland.
Swinney confirmed approximately £4 million towards the furlough scheme until work can recommence.
“To access this salary support funding, the company will need to provide evidence of sufficient orders to sustain its operations in Scotland,” said the Scottish Government.
Alexander Dennis said it has seen increased demand for its single and double-deck buses in recent weeks, and the company is confident in the placement of further orders to support Scottish manufacturing. It said details of this “remain commercially sensitive at this stage.”
Paul Davies, Alexander Dennis President & Managing Director, said: “We are deeply grateful for the Scottish Government’s commitment to preserving jobs, skills, and industrial capability in the region.
“Today’s announcement marks a turning point. The Scottish Government’s support allows us to propose a new outcome to our statutory consultation today.
“Together with our team members’ acceptance of new terms and conditions through the trade union ballot, and the confidence we have in securing new orders, we will be able to keep our manufacturing sites in Larbert and Falkirk open and operational.
“This decision saves hundreds of jobs within Alexander Dennis and supports our 1,000 suppliers throughout the UK.
“This has been made possible by collaboration, determination, and a shared belief in the value and future of domestic manufacturing, which is a critical driver of Scotland’s economy.”
Scottish Enterprise Chief Executive Adrian Gillespie said: “This welcome announcement signals a strong commitment to supporting and retaining vital Scottish manufacturing expertise in an important, growing market.
“We’ve reached this outcome through partnership working at its best, and I’d like to thank everyone involved for their dedication. Scottish Enterprise looks forward to working with the company to build a successful future in Scotland.”
Swinney said: “The Scottish Government wants to retain the manufacturing workforce of Alexander Dennis. My officials have discussed detailed terms with management and reached agreement on the principles of a company run furlough scheme.
“To access the Scottish Government funding, the company will need to provide evidence of orders that will enable its manufacturing to continue in Scotland. Although the details are commercially sensitive, I am aware Alexander Dennis is working hard to do that.
“This is intended to act as a bridge to a sustainable future for the company in Scotland. During this period, training will also be offered by Scottish Enterprise.
“It is essential we protect the skilled manufacturing jobs we need to build our transition to a green industrial economy.”