Alexander Dennis Announces Major Restructuring with Falkirk Site Closure
Bus manufacturer Alexander Dennis has unveiled a significant restructuring plan that involves the proposed closure of its Falkirk facility and the conversion of its Larbert manufacturing site. The company is currently consulting on these changes, which could put up to 115 jobs at risk of redundancy.
Proposed Changes to Manufacturing Operations
Under the new proposals, Alexander Dennis plans to convert its Larbert manufacturing facility into a dedicated chassis manufacturing site. This reconfigured operation would support all of the company's low-emission and zero-emission bus products. Meanwhile, the company would permanently close its existing facility in Falkirk.
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."
Job Impact and Previous Government Intervention
While the restructuring puts 115 positions at risk, the company emphasized that the proposal would safeguard approximately 200 skilled manufacturing and support jobs that were previously facing redundancy threats. This development follows significant government intervention in 2025 when the Scottish Government funded a furlough scheme for Alexander Dennis staff after the company announced it was considering consolidating operations at a single site in Yorkshire, which would have threatened about 400 jobs.
It is understood that approximately 85 employees have left the business since those initial announcements. Alexander Dennis retains the option to claim up to £4.1 million in Scottish Government funding to support its staff furlough scheme, subject to meeting specific conditions, though no claim has been submitted yet.
Market Challenges and Government Response
The company highlighted significant challenges facing the UK domestic bus manufacturing sector, which lost substantial market share in 2025. According to Alexander Dennis, more than half (51%) of all zero-emission buses purchased in the UK are now sourced from overseas manufacturers.
Davies commented on these market conditions: "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."
A Scottish Government spokesperson responded: "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."
Recent Positive Developments and Future Outlook
Despite the current restructuring challenges, Alexander Dennis recently received positive news with orders for more than 100 zero-emission vehicles through a Scottish Government scheme. Transport Scotland announced £45 million in government funding for five bus operators, with Rock Road and Lothian Buses set to purchase vehicles from the Falkirk-based manufacturer.
The company emphasized its commitment to supporting staff during the consultation period and maintaining manufacturing capability in Scotland. Davies added: "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."
The UK Government has been approached for comment regarding the proposed changes at Alexander Dennis.
