FALKIRK — Up to 400 jobs are at risk at one of Scotland’s most prominent manufacturing employers after Alexander Dennis confirmed plans to shift its bus production operations from Scotland to England.
The company, a major name in the UK’s transport manufacturing sector, announced on Wednesday that it is “considering” ending production at its Falkirk factory and winding down its Larbert site once current orders are fulfilled. The proposed move would see manufacturing consolidated at its facility in Scarborough, North Yorkshire.
The news has triggered alarm among staff and unions, with deep concerns about the economic and social fallout in central Scotland should the closures go ahead.
Scottish Bus Giant Hit by Global Competition
Founded in 2004, Alexander Dennis has long been a flagship for Scottish manufacturing, building iconic single and double-decker buses, including electric and low-emission models seen across the UK and abroad. But the firm is now feeling the strain of intensifying global competition, particularly from Chinese manufacturers.
In a statement, Alexander Dennis said the market share of Chinese-made electric buses in the UK had surged from 10% to 35% in just a few years, forcing the company to re-evaluate its cost base and manufacturing structure.
“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.
“It is extremely regrettable that as part of this, we must place jobs at potential risk of redundancy and propose to cease manufacturing operations at some of our facilities.”
Falkirk and Larbert Sites Under Threat
The Falkirk factory, historically the heart of Alexander Dennis’ Scottish operations, has been earmarked for closure. Meanwhile, the Larbert site, which focuses on innovation and aftersales, would close after its existing contracts are completed.
The company said the changes are part of a wider effort to reduce overheads and streamline production, with the Scarborough site set to become the central manufacturing hub.
While Davies described the decision as “painful,” he said it was “essential for long-term survival in an increasingly competitive global market.”
Industry Headwinds and Government Scrutiny
The development adds to a growing list of challenges facing the UK’s clean transport sector, which has struggled with delays to electrification subsidies, supply chain disruption, and uneven procurement policies across regions.
The move is also likely to spark political debate over the future of Scottish industrial jobs, particularly in the green transport transition—a policy area long championed by the Scottish Government.
Unions have already called for urgent talks with both the company and government officials, warning that the proposed restructuring could be devastating for the local economy.
