Alexander Dennis to keep sites open after £4m furlough pledge

Alexander Dennis to keep sites open after £4m furlough pledge

Alexander Dennis has confirmed that it will be maintaining its operations in Scotland, thanks to a £4m furlough scheme supported by the Scottish government. The company was initially planning to close its facilities in Falkirk and Larbert, leading to the loss of 400 jobs, in favor of moving production to Yorkshire. However, with the new funding in place, there is hope for the retention of these jobs and the sustainability of manufacturing in Scotland.

The furlough scheme, which will run for 26 weeks, will see the Scottish government funding 80% of the program, with Alexander Dennis covering the remaining costs. First Minister John Swinney expressed the government’s commitment to preserving the manufacturer’s workforce during a visit to the Larbert site. Discussions between officials and management have resulted in an agreement on the principles of the furlough scheme, with the aim of securing a stable future for the company in Scotland.

Despite the challenges faced by Alexander Dennis, the company has noted an increase in demand for its buses recently. This, coupled with the potential for additional orders to support Scottish manufacturing, has given hope for the future. Managing Director Paul Davies described the funding announcement as a significant moment, potentially safeguarding hundreds of jobs. The company also highlighted the importance of the workforce’s acceptance of new terms, indicating a collective effort to keep manufacturing sites in Larbert and Falkirk operational.

In order to secure the long-term production in Falkirk, Alexander Dennis still needs to secure orders for at least 300 buses annually. The company’s original plans to consolidate operations in Scarborough were altered due to competition from Chinese electric bus manufacturers. A recent vote among members of the Unite union showed strong support for the new furlough scheme, which will be overseen by Alexander Dennis with financial backing from the Scottish government. Despite the positive news, some roles not directly tied to Scottish manufacturing may still remain at risk of redundancy

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