Bus manufacturer Alexander Dennis is set to close its Falkirk factory and suspend operations at its Larbert site, placing up to 400 jobs in Scotland at risk. The decision is part of a proposed strategy to consolidate manufacturing activities at its upgraded facility in Scarborough, North Yorkshire.
The affected roles account for approximately 22% of the company’s UK workforce and 4% of its parent company, NFI Group’s, global headcount. A statutory consultation has been initiated regarding the proposed redundancies.
The Scarborough facility at Plaxton Park, which currently employs over 700 people, has been modernised to produce the full Alexander Dennis vehicle range. The company states that this strategic shift aims to enhance cost efficiency and long-term financial sustainability amid challenging market conditions.
The closure is expected to have ripple effects across the UK’s bus manufacturing supply chain. Alexander Dennis has spent over £1 billion with domestic suppliers in the past five years, supporting approximately 1,000 UK-based businesses. Industry multipliers suggest every direct job lost could affect three to four additional roles in supply and support services.
The company continues to advocate for policy reforms that would better support domestic manufacturing through targeted investment, job creation incentives, and prioritisation of local content in government contracts.