Latest news with #AlexanderDennis
The Herald Scotland
3 days ago
- Business
- The Herald Scotland
Why is there a public funds row over Alexander Dennis leaving Scotland
A government funding row stems from ADL securing tens of millions in [[pub]]lic money after first proposing to cut around one-third of its Scottish workforce, including facilities in Falkirk and Larbert in 2020 and then admitting it is looking to move to England in June. Scottish Enterprise, the agency managing government support, has stated that its most recent review found 'no risks had been identified that would preclude continued funding' to Alexander Dennis. Who is Alexander Dennis and why does it matter to Scotland? Alexander Dennis Limited (ADL) is a major bus and coach manufacturer headquartered with bases in Falkirk and Larbert. Formerly Scottish-owned, it was acquired by Canada's NFI Group in 2019. ADL employs around 1,850 people in the UK, with a significant proportion based in Falkirk and Larbert. The company is a leader in zero-emission bus technology - electric and hydrogen buses - and plays a key role in delivering Scotland's and the UK's green transport ambitions. What are the current challenges facing Alexander Dennis? ADL says it faces an 'uneven playing field' due to policies that favour foreign competitors, including Chinese electric bus manufacturers, whose market share recently rose from 10% to 35% in the UK market ADL's leadership highlighted that government procurement and subsidy schemes tend to prioritise lowest cost rather than domestic manufacturing or local job creation Additionally, UK policies under the Subsidy Control Act 2022 limit the ability to favour domestic suppliers in public funding, while Scottish rules require UK-based firms to meet Fair Work First standards, which it is claimed put ADL at a competitive disadvantage compared to international rivals who are not bound by these conditions. READ MORE from Martin Williams: Bus firm off to England in £90m Scots public funding row may get even more millions Swinney got year-long warning England-bound bus firm was 'reconsidering' Scotland FM in funding row as £90m public cash for Scots jobs given to firm going to England Union says 1600 Scots jobs at risk if government doesn't act in 'national interest' Scottish Zero Emission Bus Challenge Fund (ScotZEB) allocated £100m for green bus procurement. However, according to former SNP minister Michael Matheson with 523 vehicles ordered, only 162 - less than a third - were built by Scottish manufacturers like Alexander Dennis. It was estimated the rest went to overseas firms, including around half from China. Why are jobs in Scotland at risk? In September 2024, ADL launched a consultation on cutting 160 jobs at its Falkirk site due to funding imbalance and policy challenges In June 2025, the company announced plans to end manufacturing altogether in Falkirk and Larbert, consolidating operations at its English site in Scarborough—putting up to 400 jobs at risk in Scotland. (Image: Andrew Milligan/ PA) Unite and other unions warned that up to a multiplier of 1,600 jobs could be affected in the wider supply chain and support services if the closures proceed. Why is this important to Scotland? ADL is one of the largest manufacturing employers in central Scotland with many roles in engineering, apprenticeships, and high-skill technical jobs. The loss of production capacity would affect not only existing jobs but also local supply chains and community livelihoods ADL positions Scotland at the forefront of zero-emission transport technology, aligning with national climate targets and global export opportunities. It is argued that losing manufacturing in Larbert and Falkirk would diminish Scotland's ability to innovate and scale production in green mobility - a strategic disadvantage amid increasing global demand for clean public transport. Why is the public funding of Alexander Dennis an issue? ADL has received some £90m of taxpayer cash over the past ten years and tens of millions since a 2020 plan to axe a third of its Scottish workforce in advance of June's plan to exit to England. The firm had also admitted they had been 'forced' to offshore certain manufacturing functions to China. The public funding is contentious because substantial taxpayer money - allocated to secure jobs and promote clean, local manufacturing in Scotland has coincided with offshore production, reduced domestic orders, and now a possible factory closure and mass redundancies. This raises questions over policy design, procurement strategy, and accountability for economic outcomes. What does the Scottish Government say and how are they responding? Deputy First Minister Kate Forbes described the situation as 'hugely worrying' and says the [[Scottish Government]] is actively exploring all options to preserve jobs and retain manufacturing capacity in Scotland. The government is working with the UK Government, Transport Scotland, Scottish Enterprise, and trade unions to identify mitigation measures and potential support programs. What solutions are being proposed? Fairer procurement frameworks involving publicly funded support, including giving greater weight to local content and job creation. There has been a call for the creation of a strategic industrial partnership involving government, trade unions, industry, and colleges to support retention, reskilling, and redeployment of skilled staff in transitioning industries. Euan Stainbank MP and others have urged city-region mayors in England to place zero emission bus orders with ADL in Scotland. Their letter proposes orders totaling 70 buses in 2025, and 320 buses in 2026, to maintain steady production and job continuity. Prime Minister Sir Keir Starmer confirmed Labour support, stating they're working with mayors to secure future orders and uphold manufacturing in [[Falkirk]] and Larbert. A joint UK-Scottish Government working group, alongside Scottish Enterprise and trade unions, is meeting weekly to explore viable ways to sustain local operations.
The Herald Scotland
3 days ago
- Business
- The Herald Scotland
Public funding row bus firm Alexander Dennis may get more millions
The develpment comes amidst a public funding row which saw ADL receive tens of millions from the public purse even after it embarked on a plan to axe a third of its Scottish workforce five years ago. ADL has been warned by the Scottish Government that some of the millions could be subject to clawback if goes ahead with the move to England. The Scottish Government's Scottish Enterprise agency has said in a briefing from July 18 that in its most recent review in December, "no risks had been identified that would preclude continued funding". Scottish Enterprise says that that a joint UK working group involving themselves and the UK and Scottish governments are identifying solutions that they say "support continued investment and employment at ADL's Scottish sites". It has said that no funding has been paid out yet since the company announcement but that any support was subject to "rigorous monitoring and safeguarding measures". Scottish Enterprise chief executive Adrian Gillespie said: "We will continue to work closely with all partners to explore all avenues to retain jobs and secure long-term investment". Alba Party leader Kenny MacAskill said all further [[pub]]lic funding of ADL should cease unless there is a commitment to remain in Scotland and that millions should be clawed back if ADL departed. Last month, Alexander Dennis began consultations on a plan to close its Falkirk operations and cease manufacturing at its Larbert base with the loss of 400 on site jobs. Manufacturing would be centralised at its Scarborough operation which has the capacity to produce around 1,200 buses a year. The agency analysis came in response to a group of MSPs seeking a clear outline of the actions Scottish Enterprise is taking now, in coordination with the Scottish Government and other partners, to support continued manufacturing and investment at the Scottish sites. Unite Scotland estimates that up to 1,600 jobs could be at risk when supply chain roles are included and has warned of a 'devastating' impact on communities already reeling from the Grangemouth oil refinery closure. Ministers have confirmed that should Alexander Dennis go ahead with exiting Scotland, the financial assistance paid may be subject to "clawback". They have said that it will be down to Scottish Enterprise to decide on how to proceed. Kenny MacAskill According to Scottish Government records, ADL received £58m of public 'subsidy' for green vehicles since 2020 under two schemes aimed at transitioning Scotland to green buses - despite the company having embarked on a 2020 plan to axe a third of its Scottish workforce. And some £30m of jobs grants for research and development over 10 years has come from the Scottish Government's economic development agency Scottish Enterprise. Some £11.2m of those jobs grants from Scottish Enterprise came in 2023, three years after concerns were raised over ADL embarking on major job cuts. By the time the 2020 jobs cut was in place, ADL had already received over £8m in 'job securing' taxpayer funding which was promoted as supporting building a new greener business in Scotland. The Herald revealed that ADL warned the First Minister it was "'reconsidering' its 'entire investment' in Scotland — a year before announcing plans to relocate to England. He was also told they had already been 'forced' to offshore certain manufacturing functions to China. The First Minister intervened after learning of potential redundancies at the firm, suggesting 'further capital support' and advising Scottish Enterprise to 'exhaust all options to support the business'. Finance secretary Shona Robison has said that Scottish Enterprise "is continuing to work closely with ADL to try to find a positive solution". ADL has allowed an extra fortnight for efforts to save the jobs of workers in Falkirk and Larbert. A deadline for a consultation is now set for August 15. SNP's Alex Salmond and Nicola Sturgeon once set out the economic case for Scottish Independence from an Alexander Dennis depot (Image: Newsquest) Mr MacAskill, who said the job losses were "unacceptable", said ADL "must be held to account if they choose to relocate south of the border". And he said any further financial support given must contain firm guarantees that ADL is staying in Scotland and that funds can be recouped if there is any change of mind. He said: "Falkirk and Larbert have served them well over the years and Scottish Governments and agencies have supported them handsomely. Closure is bad enough but relocation rubs salt into the wound. "Any funds that can be clawed back absolutely must be. The workers community and Scotland deserve no less. READ MORE from Martin Williams: How buying Chinese sparked public funding row over Scots bus jobs going to England? Swinney got year-long warning England-bound bus firm was 'reconsidering' Scotland FM in funding row as £90m public cash for Scots jobs given to firm going to England Union says 1600 Scots jobs at risk if government doesn't act in 'national interest' "Workers are entitled to loyalty from their governments as well as their employers. Public funds are for public good." Ministers have said they are working with bus operators to drum up interest for much-needed orders for ADL. The company has previously said that it would need to see a significant rise in bus orders – between 70 and 100 by the end of the year and 300-400 next year – to remain open. In a briefing, Scottish Enterprise chief executive Adrian Gillespie said that it remained "fully committed to supporting ADL and safeguarding Scotland's strategic manufacturing capabilities". He added: "We will continue to work closely with all partners to explore all avenues to retain jobs and secure long-term investment." Adrian Gillespie (Image: SE) The agency has said that past funding typically include obligations such as job creation or retention, matched funding from the company involved. And while it said that while the specific terms agreed with ADL are "commercially sensitive" it "rigorously monitors all funded projects to "ensure compliance and value for public investment". "Monitoring includes regular reporting on technical progress, milestone achievements, and any deviations from the original project plan. Risks are assessed prior to each payment," said Mr Gillespie. "As of the most recent review, no risks had been identified that would preclude continued funding. Scottish Enterprise's grant conditions include key safeguards and the option to claw back funding." He added that "we remain fully committed to supporting ADL and safeguarding Scotland's strategic manufacturing capabilities. "Scottish Enterprise is working closely with ADL, the Scottish Government, and UK partners to exploit all viable options to retain ADL operations and employment in Scotland." Ministers say there is a commitment from ADL to consider keeping chassis manufacture as well as the possibility of single deck bus manufacture in Scotland. And they say action is being taken to liaise with commercial bus operators and local transport authorities to establish the current demand for double deck buses in Scotland and were working alongside the UK Government to identify demand in other parts of the UK. But there remains concerns that UK subsidy rules which has curbed [[Scottish Government]] action in providing a direct contract award to its own Inverclyde shipyard firm Ferguson Marine is hindering attempts to give [[pub]]licly funded support for ADL to try and keep the company in Scotland. But Ms Robison has said it was for the UK Government to make any changes to the Subsidy Control Act which might benefit Scottish businesses. She has told MSPs that the government was committed to looking at "all viable options" and are working with private bus companies. 'I agree about the importance of securing a short-term pipeline of orders,' she said. 'Please be assured that we are therefore liaising with commercial bus operators and local transport authorities to establish the current demand for double-deck buses in Scotland and are working alongside UK Government to identify demand in other parts of the UK," she said in a briefing. 'I am in full agreement with you about the importance of Alexander Dennis to Scotland and of retaining the jobs of the highly-skilled workers. 'That is why we are continuing to work at pace with Scottish Enterprise and UK Government, and alongside the company and trade unions, to explore all viable options to support ADL to retain bus manufacturing in Scotland.' Kate Forbes (Image: Colin Mearns) Deputy first minister Kate Forbes said: 'Our absolute focus continues to be on exploring all viable options to support Alexander Dennis Ltd, its workforce and the families and communities they support. 'The [[Scottish Government]] continues to work in close collaboration with the company, trade unions, Scottish Enterprise, Transport Scotland and the [[UK Government]] during the consultation period. 'This work includes discussions on potential support for a company furlough scheme and urgently examining options to provide greater confidence regarding short-term demand for bus manufacturing in Scotland. "
STV News
17-07-2025
- Business
- STV News
Scottish Government 'exploring all viable options' to save jobs at Alexander Dennis
Scottish ministers are working with bus operators to drum up interest for much-needed orders from Alexander Dennis Limited (ADL), the finance secretary has said. The bus manufacturer is currently consulting on proposals to close operations in Scotland and move to a single site in Yorkshire due to financial concerns, with 400 jobs potentially at risk. Appearing before MSPs last month, Alexander Dennis managing director Paul Davies said the decision was not a 'done deal', but the company would need to see a significant rise in bus orders – between 70 and 100 by the end of the year and 300-400 next year – to remain open. In a letter to Colin Smyth, the convener of Holyrood's Economy and Fair Work Committee, finance secretary Shona Robison said the Government is committed to looking at 'all viable options' and ministers are working with private bus companies. 'I agree about the importance of securing a short-term pipeline of orders,' she said. 'Please be assured that we are therefore liaising with commercial bus operators and local transport authorities to establish the current demand for double-deck buses in Scotland and are working alongside UK Government to identify demand in other parts of the UK. 'I am in full agreement with you about the importance of Alexander Dennis to Scotland and of retaining the jobs of the highly-skilled workers. 'That is why we are continuing to work at pace with Scottish Enterprise and UK Government, and alongside the company and trade unions, to explore all viable options to support ADL to retain bus manufacturing in Scotland.' Robison also suggested ADL could be forced to pay back money it has been given by the Government's commercial arm Scottish Enterprise for skills and technological development, though it would be for the agency to decide how to proceed. The finance secretary also stressed the issues the Government faces due to UK-wide state aid regulations, which govern the level to which ministers can intervene in private businesses. She said the Subsidy Control Act does not allow for subsidies which enforce the use of domestically-made goods and services, which would hamper the Scottish Government's efforts to force bus firms to use Alexander Dennis. 'Scottish ministers and officials consistently make representation on the development of the subsidy control regime for the benefit of Scottish businesses,' she said. 'However, as this is a reserved matter, it is ultimately for UK Government to make the final decision on any changes to the regime.' A UK Government spokesperson said: 'The UK is a global leader in bus manufacturing, and around 60% of buses funded through our zero-emission regional bus programme are being built by UK-based companies, supporting jobs and a greener transport network. 'Alexander Dennis has a strong future in the UK's growing zero-emission bus market. Through the spending review, we have committed £15.6 billion to local leaders to boost services and green fleets across the UK. 'We're also giving regional leaders and leading manufacturers a voice on zero-emission plans, through the UK bus manufacturing expert panel, which seeks to put local people at the heart of bus building.' 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
Glasgow Times
17-07-2025
- Business
- Glasgow Times
'SNP government shouldn't be letting our own industry die'
They expanded into bus services and coachbuilding a century ago, in 1924, and grew to be one of the country's leading coachbuilders. Today, Alexander Dennis is a major player in the global bus industry, providing good, high-skilled manufacturing jobs across the country and exporting Scottish-built buses as far afield as Hong Kong, Malaysia, New Zealand, and the United States, with 31,000 ADL buses in service around the world, carrying 25,000 passengers every minute of each day. But this Scottish industrial success story is under threat as the ADL board now propose closing its Scottish manufacturing base and moving all production to Scarborough, citing a lack of demand from Scottish bus operators for their new electric buses. The closure of the Falkirk and Larbert factories would be a devastating blow for our country, with 400 job losses and another key Scottish industry gone. But this hasn't happened overnight – it is a direct result of the SNP government's self-defeating procurement policy that has failed to support this Scottish industry. Most of the new electric buses being bought by the likes of First Glasgow and McGill's are partially funded by Scottish Government subsidies. I recently asked the Scottish Government how many of these buses funded by the Scottish Zero Emission Bus Challenge Fund were made here in Scotland. While I knew that too often the government's procurement policy failed to bolster the domestic industry, I was shocked that less than a third of these buses were made in Scotland. Of the 523 electric buses funded through the Scottish Government subsidy scheme, more than two-thirds, 340 buses, have been manufactured overseas, with 287 buses – over half – made in China by Yutong. The reality is that while the Scottish Government has failed to support Alexander Dennis, the Mayor of Greater Manchester, Andy Burnham, has bought over 160 Alexander Dennis electric buses to operate on the new publicly controlled Bee Network bus franchise. If the Mayor of Greater Manchester can buy Scottish buses, why can't the First Minister? The Scottish Government's public procurement policy is not fit for purpose as, unlike in every other part of the UK, it completely disregards the 'social value' that is created in the local area. They are asleep at the wheel while other countries take increasingly assertive measures to develop their industrial champions. The Scottish electric bus scheme is weighted primarily towards financial cost (40%) with 'wider community and decarbonisation benefit' – including job creation – receiving only a 10% weighting. Chinese firms like Yutong exploit lower labour costs and weaker employment rights, allowing them to substantially undercut Alexander Dennis on price. While the process did include criteria for job creation and wider community benefits, the weighting of just 10% was far too low to counterbalance the cost advantages of overseas suppliers. As a result, the Scottish Government effectively prioritised the cheapest bids, regardless of where the resulting buses were made or the domestic economic benefits they could generate. It's amazing that Alexander Dennis won any contracts at all, given how the government's scheme was so unfairly rigged against its own industrial base. This senseless and damaging procurement policy must urgently be reformed to unashamedly support critical manufacturers in Scotland by prioritising wider social value considerations over financial cost, which domestic firms would be better placed to meet, rather than the perverse situation where Scottish taxpayers are subsidising foreign competitors putting hundreds of our own workers out of a job. When the government buys a bus from Alexander Dennis, it doesn't just support that business. For every job in bus manufacturing, it is estimated that there is a multiplier effect of three to four jobs in the wider supply chain. The negative impact is already being seen. A major supplier to Alexander Dennis, Greenfold Systems in Dunfermline, has made 80 workers redundant after a key contract between the two firms was withdrawn. The lack of social value weighting and understanding of the multiplier effect goes beyond procuring new buses. Earlier this year, the Scottish Government announced that the new fleet of Loch-class electric ferries for Caledonian MacBrayne would be built by Remontowa in Gdańsk, Poland. The Scottish Government-owned Ferguson Marine in Port Glasgow lost out on the contract, meaning the only thing keeping the lights on at that site is subcontract work for Type 26 Frigates from BAE Systems. The decision to award Remontowa the contract was based upon a weighting of 65% technical and 35% financial. At no stage was social value considered – the jobs that would have come from the contract or the positive economic boost to the west of Scotland. If Scotland is to reindustrialise, the Scottish Government must urgently embrace a more assertive, ambitious, and coordinated approach to industrial policy that is geared towards supporting Scotland's industrial champions, not foreign competitors. With Alexander Dennis recently extending the consultation on closure, it's still not too late; every avenue should be exhausted to safeguard jobs and save this crown jewel of Scottish industry.
Scotsman
16-07-2025
- Business
- Scotsman
Ministers trying to drum up interest in Alexander Dennis orders, says Robison
The Prime Minister has been told more orders need to be placed at the bus manufacturer's Scottish bases. Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Scottish ministers are working with bus operators to drum up interest for much-needed orders from Alexander Dennis Limited (ADL), the Finance Secretary has said. The bus manufacturer is currently consulting on proposals to close operations in Scotland and move to a single site in Yorkshire due to financial concerns, with 400 jobs potentially at risk. Advertisement Hide Ad Advertisement Hide Ad Appearing before MSPs last month, Alexander Dennis managing director Paul Davies said the decision was not a 'done deal', but the company would need to see a significant rise in bus orders – between 70 and 100 by the end of the year and 300-400 next year – to remain open. Around 400 jobs in Scotland are at risk. | Michael Gillen/National World In a letter to Colin Smyth, the convener of Holyrood's Economy and Fair Work Committee, Finance Secretary Shona Robison said the Government is committed to looking at 'all viable options' and ministers are working with private bus companies. 'I agree about the importance of securing a short-term pipeline of orders,' she said. 'Please be assured that we are therefore liaising with commercial bus operators and local transport authorities to establish the current demand for double-deck buses in Scotland and are working alongside UK Government to identify demand in other parts of the UK. Advertisement Hide Ad Advertisement Hide Ad 'I am in full agreement with you about the importance of Alexander Dennis to Scotland and of retaining the jobs of the highly-skilled workers. 'That is why we are continuing to work at pace with Scottish Enterprise and UK Government, and alongside the company and trade unions, to explore all viable options to support ADL to retain bus manufacturing in Scotland.' Ms Robison also suggested ADL could be forced to pay back money it has been given by the Government's commercial arm Scottish Enterprise for skills and technological development, though it would be for the agency to decide how to proceed. At Prime Minister's Questions in the House of Commons, Sir Keir Starmer said the Labour Party is working with English mayors to put orders for zero emissions buses into Alexander Dennis in a bid to save the company from closure. Advertisement Hide Ad Advertisement Hide Ad Alloa and Grangemouth MP Brian Leishman asked: 'Alexander Dennis needs commitment for orders in 2025 and 2026, and elected mayors are ideally placed to do this. 'Where things are made and by whom matters - can the Prime Minister assure Alexander Dennis and its workers that he believes bus manufacturing should have a future in Larbert and Falkirk?' In response, Sir Keir said: 'This is a deeply concerning time for workers and their families and I do agree. Advertisement Hide Ad Advertisement Hide Ad 'We are working with mayors on delivering a pipeline for future orders for zero emission buses, that's an important aspect here. 'The local transport minister is hosting an urgent meeting with the bus manufacturing expert panel.' Prime Minister Sir Keir Starmer | Stefan Rousseau/Press Association The Prime Minister then hit out at the Scottish Government after it was revealed it had ordered new buses from China rather than from Alexander Dennis. He added: 'While Labour mayors in England are ordering Scottish buses, the SNP is ordering buses from China, just like they ordered ferries from Turkey and Poland.
