Bus maker Alexander Dennis is to move all of its Ƶ manufacturing work to a single site in Yorkshire.
The Scottish-headquartered company said it is looking at “consolidating its Ƶ bus body manufacturing operations” in Scarborough. The move would mean its manufacturing facility in Falkirk – which Alexander Dennis said had “already been reduced in recent years” – would close with the likely loss of around 400 jobs.
Alexander Dennis said the changes would lower costs and increase efficiencies but unions said the move was a “hammer blow” for communities “already reeling” from the closure of the nearby oil refinery at Grangemouth.
Paul Davies, Alexander Dennis president and managing director, said: “We are proposing a new Ƶ manufacturing strategy to underpin financial sustainability and lower operating costs in the face of changing and challenging market dynamics.
“Together with our parent NFI Group, we are extremely proud of our Ƶ history and legacy dating back to 1895 and firmly believe in our people, products and business. We must take significant action to drive efficiency to allow our operating model to be competitive. 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.
“While stakeholders have been sympathetic of the situation, the stark reality is that current Ƶ policy does not allow for the incentivisation or reward of local content, job retention and creation, nor does it encourage any domestic economic benefit.
"We have warned of the competitive imbalance for some time and would like to see policy and legislative changes that incentivise the delivery of local benefit where taxpayer money is invested. We strongly believe funding that supports public transport should lead to investment in local jobs, domestic supply chains, technology creation and a recurrent tax base.”
Sharon Graham, general secretary of the Unite trade union said the end of manufacturing at Falkirk and Larbert was “devastating”. She added: “It is the latest huge economic blow to hit local communities on the back of the Grangemouth oil refinery closing.”
Scottish Deputy First Minister Kate Forbes said: “This will be a hugely worrying time for the workforce at Alexander Dennis, their families and the wider community.”
She said the Scottish Government has in recent weeks “engaged extensively” with the company and its parent firm NFI to “understand the issues and ensure that every possible avenue is explored to mitigate the need for redundancies”.
Ms Forbes and Scottish First Minister John Swinney have been involved in these talks, along with representatives from Scottish Enterprise, Transport Scotland and the Ƶ Government.
