Scottish bus manufacturer Alexander Dennis is exploring options to retain jobs in Scotland, proposing to preserve up to 200 roles at its Larbert facility while proceeding with the planned closure of its Falkirk plant.
The company had initially announced in June 2025 that both Scottish sites would close, with production consolidated at its facility in Scarborough, England, putting up to 400 jobs at risk. The move was attributed to “challenging market dynamics,” according to Paul Davies, President and Managing Director of Alexander Dennis.
Davies said at the time: “We must take significant action to drive efficiency to allow our operating model to be competitive,” citing the need to reduce costs and streamline operations.
The restructuring comes amid intensifying competition, particularly from Chinese electric bus manufacturers, whose share of the UK market has risen significantly. This trend has affected domestic producers despite existing partnerships, including Alexander Dennis’s earlier collaboration with BYD.
Following political pressure, the Scottish Government introduced a £4 million furlough package in September 2025, covering 80% of costs for 26 weeks and temporarily safeguarding operations at both sites. The support allowed the company time to reassess its long-term strategy amid improving short-term demand for buses.
Under the revised proposal, the Larbert plant would be repurposed as a chassis manufacturing facility for zero- and low-emission buses. The company said this approach could secure around 200 skilled jobs and retain approximately 350 positions in Scotland overall, although up to 115 roles remain at risk.
“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,” Davies said.
He added that further government support would be necessary to sustain domestic manufacturing. “The UK domestic bus manufacturing sector has lost significant market share in 2025, with 51% of all zero-emission buses purchased in the UK sourced from overseas manufacturers,” the company said, highlighting increasing competition from imports.
Davies also urged policymakers to strengthen support mechanisms. “Manufacturing in this country needs to be better supported if we are to generate the economic benefit that the country so badly needs,” he said.
The proposal remains under consultation, and no final decision has been made. Alexander Dennis, part of Canada-based NFI Group since 2019, said it continues to assess options to balance competitiveness with its long-standing industrial presence in Scotland.