British bus manufacturer Alexander Dennis has announced a major restructuring of its UK production footprint, proposing the closure of its two Scottish factories in Falkirk and Larbert and the consolidation of operations at its facility in Scarborough, England. The decision puts up to 400 jobs at risk and marks a significant shift for one of the country’s oldest vehicle builders.
The move follows a comprehensive internal review and is part of a broader effort to adapt to “changing market dynamics,” according to the company. A formal consultation process with employees and stakeholders has begun.
“We must take significant action to drive efficiency to allow our operating model to be competitive,” said Paul Davies, President and Managing Director of Alexander Dennis, outlining the company’s objective to reduce duplication, streamline responsibilities, and cut operational costs.
The company, which offers zero-emission buses under its Enviro line, highlighted structural challenges in the UK policy landscape as part of its rationale. Davies noted that current government policies do not incentivize domestic content or job retention, adding that Alexander Dennis has previously flagged concerns about competitive imbalances in the industry.
The growing market share of Chinese electric bus manufacturers has intensified pressure on UK-based firms. While Alexander Dennis once partnered with Chinese firm BYD, it launched its own electric models in 2022. According to the company, the UK market share of Chinese competitors has surged from 10% to 35% within a year.
“In 2025, between 700 and 800 buses will be supplied by two Chinese competitors,” Davies told Sustainable Bus, underscoring the scale of international competition.
Under the proposed restructuring, production in Falkirk—where Alexander Dennis traces its roots back to 1901—will be phased out. The Larbert facility, which also saw reduced output in recent years, will stop production after fulfilling existing contracts. Scarborough will serve as the sole UK manufacturing site moving forward.
The announcement has drawn strong reactions from Scottish leaders. Deputy First Minister Kate Forbes described the situation as “hugely worrying” and pledged that the government would explore all available options during the consultation period to preserve jobs and production in Scotland.
Opposition lawmakers criticized the distribution of government support under the Scottish zero-emission bus fund (ScotZEB), pointing out that of 252 potential orders, only 44 were awarded to Alexander Dennis. Labour MSP Euan Stainbank called the situation “an industrial failure” and accused the Scottish government of allowing jobs to slip away.
Founded in Falkirk over a century ago, Alexander Dennis became part of the Canadian-based NFI Group in 2019. The company said the proposed restructuring aims to ensure long-term sustainability amid evolving competitive and economic conditions.