400 jobs at risk as Alexander Dennis seeks to ‘consolidate' bus manufacturing
This would mean its manufacturing facility in Falkirk – which Alexander Dennis said had 'already been reduced in recent years' – would close.
In addition the firm said the production lines in Larbert, where it also has its global HQ, would be suspended when current contracts are completed.
The GMB Scotland union said the move was a 'hammer blow' for communities 'already reeling' from the closure of the nearby oil refinery at Grangemouth.
Senior organiser Robert Deavy said: 'If the company is reviewing its future operations, it must do so with an open mind and a determination to save jobs, not shed them.
'We will do everything in our power to secure the future of Alexander Dennis in Falkirk, but so must the company and so must ministers.'
Alexander Dennis said the changes would lower costs and increase efficiencies.
But it added up to 400 jobs – about 22% of its workforce – would now be at potential risk of redundancy.
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 UK Government.
Ms Forbes pledged: 'The Scottish Government will continue to explore any and all options throughout the consultation period to allow the firm to retain their hard-working employees and manufacturing and production facilities at Falkirk and Larbert.'
She added that in the event of job losses, the Scottish Government would provide support through its Partnership Action for Continuing Employment (Pace) initiative.
Paul Davies, Alexander Dennis president and managing director, said the firm is proposing a UK manufacturing strategy 'to underpin financial sustainability and lower operating costs in the face of changing and challenging market dynamics'.
With Alexander Dennis dating back to 1895, Mr Davies stressed bosses 'firmly believe in our people, products and business'.
But he added: '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.'
Mr Davies said this is necessary because 'the stark reality is that current UK policy does not allow for the incentivisation or reward of local content, job retention and creation, nor does it encourage any domestic economic benefit'.
He added: '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.
'It is our hope that the forthcoming industrial strategy will provide reassurance that there is value in manufacturing within the borders of the UK and we remain hopeful of policy and legislative changes that increase the UK's focus on support for domestic manufacturing.
'Our new strategy would allow us to respond appropriately to increase local production if structural changes are made.'
Scottish Secretary Ian Murray said part of the problem at Alexander Dennis was because SNP ministers had 'not ordered enough buses' from them.
He said the Scottish Government had ordered 44 buses from the firm, contrasting this with the 200 buses ordered by Greater Manchester Mayor Andy Burnham.
Mr Murray added the restructuring plans were a 'huge shock for the local area' but said the 45-day period that would now follow gave 'time to see if there is ways in which we can help'.
Speaking for the UK Government, he added: 'We've been encouraging the Scottish Government to look at a furlough scheme for Alexander Dennis employees in order for us to be able to buy a little bit of time to work through some of the problems that the company have got.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
STV News
an hour ago
- STV News
Edinburgh Airport's ‘pioneering' solar farm praised by deputy first minister
Scotland's deputy first minister has said an airside solar power project, which can provide more than a quarter of an airport's electricity is a 'fantastic example' of 'real and lasting change'. Kate Forbes was speaking as she officially opened an 11-acre solar farm, which is adjacent to the runway at Edinburgh Airport. Capable of generating approximately 27% of the airport's power needs, bosses said there have been times this year when the airport has operated solely on solar energy between 8.30am and 7pm. The project, which was supported with £2.1m of Scottish Government cash, is said to be the first of its kind in Scotland. PA Media Deputy First Minister Kate Forbes hailed the 'pioneering project' (Andrew Milligan/PA) It was developed as Edinburgh Airport seeks to reduce its own emissions to net zero by 2030, with the airport saying it has already reduced these by 90% from 2019. Airport chief executive Gordon Dewar said: 'Making sure we have a sustainable future is one of our most important goals, and it's important that we innovate and harness technology that can help deliver that for the airport. 'The introduction of the UK's first airfield solar farm is a key part of our Greater Good sustainability strategy, delivering almost 27% of our energy needs and diversifying our energy mix – and we are proud to be an airport that continues to look to innovative solutions to meet our goals.' Mr Dewar said the scheme 'also demonstrates how Government and the private sector can work together to help deliver a more sustainable Scotland alongside, in our case, the benefits of air travel and connectivity to the economy'. ☀️| Solar power shining on Edinburgh Airport. Deputy First Minister @_KateForbes officially opened our airside solar farm this morning. The eleven-acre airside farm is a Scottish first and can provide approximately 27% of the airport's energy needs. — Edinburgh Airport (@EDI_Airport) August 20, 2025 Forbes stressed the Scottish Government is 'committed to working with the private sector to accelerate Scotland's transition to a net zero future'. The deputy first minister said: 'Edinburgh Airport's solar farm is a fantastic example of how Government support, combined with private sector appetite and expertise, can deliver real and lasting change. 'By generating clean energy on site, this pioneering project is not only helping one of the country's most important transport hubs cut emissions but also supporting green jobs, energy resilience and sustainable economic growth. 'I am proud that Scottish Government funding has played a part in making this vision a reality and showing the kind of leadership we need on the journey to net zero.' The airport worked with solar experts AMPYR Solar Europe (ASE) to develop, fund and operate the project, which has been generating power since 2024 Tarun Agrawal, chief executive of ASE, said: 'The commitment shown by Scottish Government has critically provided certainty and confidence, and we look forward to contributing further to Scotland's energy transition.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
The Herald Scotland
2 hours ago
- The Herald Scotland
Ithaca shareholders get big payouts after firm cuts jobs
The growth will support big payouts to investors planned by Aberdeen-based Ithaca, which expects to declare dividends worth $500m for the current year. It could also help Ithaca to fund work on controversial projects West of Shetland that are facing strong opposition from campaigners. Ithaca said work on the project to develop the huge Rosebank field off Shetland with Equinor was progressing on all fronts. Ithaca also underlined its confidence in the potential to bring the Cambo field into production although Shell lost interest in it. READ MORE: Oil giant hails North Sea performance as it plans hefty job cuts The growth in first half profits reflected the benefit of mergers and acquisitions activity completed in recent years by London Stock Exchange-listed Ithaca, which looks to be planning other North Sea expansion moves. In October Ithaca merged its operations with the bulk of the North Sea business developed by Italian giant Eni. Israel's Delek was left with a 51% stake in the enlarged business with Eni on 39%. Ithaca acquired an additional stake in the giant Seagull oil field in March through the $193m takeover of Japex's North Sea business. It took control of the UK's biggest gas field, Cygnus, in May after acquiring a $154m stake from Centrica-owned Spirit Energy. The growth in first half profits followed a 133% increase in production, to an average 123,600 barrels oil equivalent per day, from 53,000 boepd. Ithaca has benefited from the investment it has made in increasing production from the assets acquired from other firms and moves to squeeze costs out of the enlarged business. In March Ithaca announced plans to cut jobs under a restructuring process without specifying how many. READ MORE: As Chevron closes Aberdeen office, what now for North Sea jobs? The deals struck in recent months have helped confirm directors' confidence in a strategy which has seen Ithaca capitalise on moves by other firms to reduce their exposure to the North Sea. Industry leaders have warned that the increase in the tax burden on North Sea firms that resulted from measures in the Labour Government's first Budget in October could prompt firms to slash investment in the area. However, Ithaca's executive chairman Yaniv Friedman declared: 'Strategic progress across our West of Shetland developments and recent acquisitions executing on our UKCS growth strategy, further position us for long-term growth." (Image: Ithaca Energy) In the results announcement Ithaca said it continued to maintain an active but patient pursuit of mergers and acquisition opportunities in the UK North Sea and globally. Ithaca signalled that directors' concerns about tax and regulatory challenges had eased in recent months following a period in which the company faced potentially serious obstacles. The Rosebank project was thrown into doubt after a Scottish court ruled that the UK Government had been wrong to approve it. That was because the assessment process failed to take account of emissions that would be generated by use of the oil and gas concerned. Ithaca noted that the UK Government had introduced a new assessment process in June. It is expected the process will address the Court of Session's concerns. Ithaca also noted it has been an active participant in a UK Government consultation process regarding plans to replace the windfall tax with a system that would respond faster to changes in oil and gas prices. Ithaca expects to learn the outcome in the fourth quarter. READ MORE: Scottish windfarms paid £120m in six months not to generate electricity Favourable changes to the tax regime could make it easier for Ithaca to find a partner that would be prepared to invest in the development of the Cambo field. Ithaca bought Shell's stake in Cambo in 2023. Shell dropped plans for the Cambo development in 2021 citing concerns about the economics of the project. Ithaca upgraded its production guidance for this year to up to 125,000 boepd from up to 119,000 boepd. Ithaca declared a $167m interim dividend worth $0.101 per share.
The National
2 hours ago
- The National
Octopus Energy steps in as SNP members call to pause Scottish renewable projects
The SNP's Loudon branch has put forward a motion to be considered at the party conference in October, calling for planning approval of large renewables projects to be put on hold 'until such a time as a zonal electricity price, benefiting at least all Scottish consumers, has been established and implemented'. It comes after the UK Government announced last month it would not be pursuing zonal pricing, which would have seen different areas of the UK pay different rates for their electricity based on local supply and demand. Scottish consumers could have benefitted from some of the cheapest electricity in Europe had the plans gone ahead, Octopus Energy has said. READ MORE: Seamus Logan: Scotland is wealthy but GERS makes it look poor. Time for a rethink Rachel Fletcher, director for regulation and economics at Octopus, said the company has long feared a public backlash to renewables would develop if a fairer and more efficient market was not introduced by the UK Government. She said this motion is example of this coming to fruition and it should be a 'wake-up call' for Labour. 'One of the reasons we ran such a strong campaign for zonal pricing was yes, we believe passionately that it would be good for energy consumers, but we were also so passionate because we are very worried about the backlash against renewables,' Fletcher told The National. 'We can see that as electricity bills go up and as renewables are not delivering the promised price advantages to consumers that that backlash is going to grow. 'That is something the renewable community should be worried about, and they should be as vocal as we are being.' Energy Secretary Ed Miliband opted not to go ahead with zonal pricing (Image: PA) She added: 'When the Government decided not to go with zonal, it really did not put an alternative on the table and I think this motion should be a wake-up call that we need solutions on the table and government either needs to reconsider its zonal decision or they need to come up with serious measures that will deliver real benefits for customers and cut the waste in the system.' Currently, the UK has one national energy price despite the cost of producing electricity differing throughout the day across the country. If an offshore wind farm in Scotland produces more electricity than the network can handle it is paid to turn off, or be "constrained", and a gas-fired power plant in the south of England is paid to turn on. READ MORE: John Swinney: Shetland has significant role in driving economic growth Octopus Energy launched a "wasted wind" tracker last month to show the public how much billpayers' money is being spent on turning off windfarms. According to the energy provider, constraint costs have hit more than £800 million already this year. Fletcher said she understood the sentiment behind the SNP branch motion, but she did stress the need to continue investing in renewables for the sake of the environment. 'It is incredibly frustrating for people living in Scotland, close to wind farms, to experience the disruption associated with building wind farms and then to watch them sit idle and also realise they are not directly benefitting from the much lower energy prices they could be receiving were the value of those local wind farms to be reflected in their bills,' she said. 'We fully support the shift to relying on renewables and not fossil fuels and we know that ultimately, a system which has got renewables on it makes us less dependent on imported gas, less exposed to price shocks and should be giving us much lower electricity bills going forward. The problem is the way the system works at the moment.' She went on: 'In the absence of zonal, we need to start getting very serious about solutions to these problems, otherwise what we are going to have is more and more people and political parties saying no to renewables and that is going to be disastrous for the environment and the future security of our energy supplies.' The motion has made a longlist being considered for the conference and the final agenda will be published on September 19. The full text reads: 'Conference recommends that, in the interests of fairness on a UK-wide basis, planning approval of any new large scale equipment in Scotland required to produce, store or distribute electricity derived mainly or entirely from weather related sources (eg wind, hydro, tidal or solar ) is paused until such time as a zonal electricity price, benefiting at least all Scottish consumers, has been established and implemented. 'Conference resolves that the zonal pricing agreement will supersede any other constraining legislation and will not, as a consequence, lead to detrimental terms for Scottish consumers of other fuel sources (eg gas, oil, coal) nor lead to any Barnet or block grant related consequentials. Large scale in this context will cover equipment in a single planning application with an output greater than 5MW.' The UK Government and Scottish Government have been approached for comment.
