Scottish Government announces £4m furlough scheme to save Alexander Dennis site

Bus manufacturer Alexander Dennis says it will maintain its Scottish sites following a £4m furlough scheme pledged by the Scottish Government.  

Alexander Dennis was set to close its facilities in Falkirk and Larbert, resulting in 400 job losses, after it announced plans to relocate its manufacturing operations to an existing site in Scarborough, Yorkshire, in June.  

The announcement followed the closure of the nearby Grangemouth oil refinery, where another 400 workers were also made redundant. 

Visiting the site, First Minister John Swinney said access to the funding the company will need to “provide evidence of orders that will enable its manufacturing to continue in Scotland”. 

The furlough scheme will run for six months to help Alexander Dennis restart its manufacturing operations. 

“The Scottish Government wants to retain the manufacturing workforce of Alexander Dennis. My officials have discussed detailed terms with management and reached an agreement on the principles of a company-run furlough scheme,” the first minister said. 

In a trade union ballot last week, 85 per cent of staff voted in favour of updated terms and conditions for the Scottish workforce. 

Swinney continued: “This is intended to act as a bridge to a sustainable future for the company in Scotland. During this period, training will also be offered by Scottish Enterprise. 

“It is essential we protect the skilled manufacturing jobs we need to build our transition to a green industrial economy.” 

Alexander Dennis has indicated to the Scottish Government that it believes it can obtain enough orders to keep manufacturing operations in Scotland. 

Alexander Dennis president and managing director, Paul Davies, said: “We are deeply grateful for the Scottish Government’s commitment to preserving jobs, skills, and industrial capability in the region. 

"This announcement marks a turning point. The Scottish Government’s support allows us to propose a new outcome to our statutory consultation. 

"This has been made possible by collaboration, determination, and a shared belief in the value and future of domestic manufacturing.”