Ministers seek 11th-hour reprieve for jobs at Alexander Dennis
Although the details have not been disclosed, the first minister John Swinney has urged the company to extend its mandatory closure consultation period, which expires on August 15, for it to be finalised.
The specifics had to be kept private at this point because of commercial sensitivity, the need for further discussions and to allow due diligence on viability to take place, the government said.
Alexander Dennis announced plans in June to stop manufacturing in central Scotland, at sites in Falkirk and Larbert, resulting in 400 job cuts. Suppliers have already been forced to make scores of staff redundant. The bus company is proposing to centralise bus construction in Scarborough, North Yorkshire.
'Scottish ministers place the utmost importance on the presence of Alexander Dennis in Scotland and the retention of its highly skilled manufacturing workers,' Swinney said.
'The Scottish government has committed to exploring any and all viable options through the consultation period to allow the firm to retain its skilled employees and manufacturing and production facilities.
'While I cannot provide details due to commercial sensitivity at this time, I hope this update provides the workforce and the local community with further assurance that the Scottish government remains wholly committed to supporting the future of bus manufacture in Scotland.'
Kate Forbes, the deputy first minister, will meet with the unions GMB and Unite on Monday to update the Scottish workforce.
Alexander Dennis is the largest bus and coach manufacturer in the UK and had a 50 per cent market share in 2019. The firm's managing director, Paul Davies, said it would need to win orders for at least 70 new buses this year — and a further 300 next year — for it to keep its Scottish sites open.
The issue was demand and the company did not have sufficient volume in the order book to sustain two manufacturing sites in the UK, Davies said. The Scarborough operation has the capacity to produce around 1,200 buses a year.
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