Alexander Dennis bus maker jobs in Scotland rescued in £4m furlough deal

Alexander Dennis has laid out plans to continue bus building in Scotland after the Government stepped in with a £4m furlough package

The manufacturer, which has eight sites across the UK, including in Falkirk and Larbert, announced in June that up to 400 jobs could be axed in proposals to close operations in Scotland.

The company planned to move to a single site in Yorkshire due to financial concerns.

However, during a visit to the Alexander Dennis Larbert site, First Minister John Swinney confirmed that a furlough scheme had been put in place to retain jobs.

The financial support, which lasts 26 weeks, will only be made available when the company demonstrates future orders.

The company said it is confident that orders will be placed after an increased demand for its single and double-decker buses in recent weeks.

Alexander Dennis president and managing director Paul Davies told a Holyrood committee earlier this year the firm would need to secure between 70 and 100 bus orders by the end of the year as well as between 300 and 400 next year to be viable.

Responding to the news, Mr Davies said the company was “deeply grateful”.

“This announcement marks a turning point. The Scottish Government’s support allows us to propose a new outcome to our statutory consultation,” he said.

“This has been made possible by collaboration, determination and a shared belief in the value and future of domestic manufacturing.”

The Scottish Government will pay 80% of the wages while Alexander Dennis will pay the remainder.

The First Minister said: “The Scottish Government wants to retain the manufacturing workforce of Alexander Dennis.

“My officials have discussed detailed terms with management and reached an agreement on the principles of a company-run furlough scheme.

“To access the Scottish Government funding, the company will need to provide evidence of orders that will enable its manufacturing to continue in Scotland. Although the details are commercially sensitive, I am aware Alexander Dennis is working hard to do that.

“This is intended to act as a bridge to a sustainable future for the company in Scotland. During this period, training will also be offered by Scottish Enterprise.

“It is essential we protect the skilled manufacturing jobs we need to build our transition to a green industrial economy.”