Up to 90 jobs at risk at manufacturing firm after Alexander Dennis plans to pull out of Scotland

Up to 90 jobs are at risk at a manufacturing firm in Dunfermline as a knock-on effect of bus company Alexander Dennis planning to pull out of Scotland.

Workers at Greenfold Systems Ltd were put on notice of potential job losses with around half of staff working on constructing parts for Alexander Dennis buses.

One of the company’s three buildings is dedicated to the work on the buses, with sites in Dunfermline and Lochgelly and Chatham in England.

Graeme Downie, Labour MP for Dunfermline and Dollar has written to First Minister John Swinney about the threat of job losses at Greenfold.

He told STV News: “The management and staff at Greenfold Systems are doing their best in an incredibly difficult situation but the fact these 90 jobs in Dunfermline are at risk just shows the ripple effects of the SNP’s economic incompetence and their failure to support Alexander Dennis and bus building in Scotland.”

It comes after Alexander Dennis confirmed up to 400 jobs are at risk as it announced plans to close its site in Falkirk.

The global independent bus manufacturers, a subsidiary of NFI Group Inc., confirmed that the consultation process had begun earlier this month.

The bus manufacturer, which has eight sites across the UK including Falkirk and Larbert, announced that up to 400 jobs Scottish jobs could be axed.

The firm is consolidating its UK bus body manufacturing operations into a single site in Scarborough, England.

The Falkirk site is to be shut down, and production lines at Larbert will be suspended upon the completion of current contracts.

Alexander Dennis said the move will “lower overall costs, deliver clearer responsibilities and increase efficiency”.

On Thursday, the company told MSPs the closure is “not a done deal”, but orders for up to 100 buses and changes to regulation are needed before the end of the year.

“It’s absolutely not a done deal, it is a consultation process,” said president and managing director Paul Davies.

“We’re very grateful for the active engagement we’ve had from both governments, from other political parties and stakeholders – we’re absolutely committed to keeping those conversations going, along with this committee too.

“But there are, for us, other implications around the long-term, the runway, is the market dynamic going to change?

“Our assumptions are, if they don’t change, we have to take action to look after the company.”

But Mr Davies told the committee the firm would need to see consistent orders made to help stabilise the future of the business in Scotland.

Asked how many orders the firm would need this year, he said it would be around 70 to 100 buses by the end of the year and 300 to 400 for next year.

But even if the orders come, there will be a lag before work can begin on manufacturing to allow for design and the acquisition of materials.

There have been calls for a furlough scheme to be put in place, with the Government being urged to step in and pay workers until building can begin.

Trade union bosses estimated that such a scheme would cost up to £5m a committee meeting on Wednesday.

Scottish Liberal Democrat economy spokesperson Jamie Greene MSP said: “This will be an extremely difficult time for the workforce at Greenfold Systems, and my thoughts are with them today.

“The SNP’s failure to support bus building and buying in Scotland is inflicting a chain reaction of misery for workers and local communities across the country.

“If the SNP government are serious about delivering for our economy, they should be sitting down with the firm to thrash out a solution and finally get behind Scottish manufacturing.”

Earlier this month, Deputy First Minister Kate Forbes pledged to “leave no stone unturned” to secure a future for the workers at risk of losing their jobs.

Richard Lochhead, Minister for Business and Employment, said on Saturday: “I am very disappointed to learn that Greenfold Systems Ltd has entered into consultation with a view to making redundancies at its Dunfermline site.

“This will be a difficult time for the employees at risk of losing their jobs, their families and for the local area.

“Scottish Enterprise will engage with the company to better understand the reasons for this decision and whether it can offer any assistance.

“The people affected by this announcement are our immediate priority and the Scottish Government will do everything in its power to help those affected through our initiative for responding to potential redundancy situations, Partnership Action for Continuing Employment.”

Greenfold Systems Ltd has been contacted for comment.