Alexander Dennis, a subsidiary of NFI Group Inc., a leader in propulsion-agnostic bus and coach mobility solutions, today announced that following intensive engagement with internal and external stakeholders, the company intends to keep its Scottish manufacturing sites open and operational.
The proposal was made possible through the advocacy and intervention of the Scottish Government and Scottish Enterprise, combined with the company’s trade union partners taking a constructive, solution-focused approach.
A key element in creating this viable path forward for Alexander Dennis’s Scottish manufacturing operations is a furlough scheme for roles that are required to sustain future manufacturing capacity. This scheme will run for 26 weeks to enable the required lead-times to get manufacturing back online.
Scottish First Minister John Swinney confirmed the support from the Scottish Government in a speech to workers as part of a visit to Alexander Dennis’s Larbert site today, alongside key stakeholders including Scottish Enterprise.
Alexander Dennis has seen increased demand for its single and double-deck buses in recent weeks, and the company is confident in the placement of further orders to support Scottish manufacturing. Details of this remain commercially sensitive at this stage.
“This decision saves hundreds of jobs within Alexander Dennis and supports our 1,000 suppliers throughout the UK.”
Paul Davies, Alexander Dennis President & Managing Director, said: “We are deeply grateful for the Scottish Government’s commitment to preserving jobs, skills, and industrial capability in the region.
“Today’s announcement marks a turning point. The Scottish Government’s support allows us to propose a new outcome to our statutory consultation today. Together with our team members’ acceptance of new terms and conditions through the trade union ballot, and the confidence we have in securing new orders, we will be able to keep our manufacturing sites in Larbert and Falkirk open and operational. This decision saves hundreds of jobs within Alexander Dennis and supports our 1,000 suppliers throughout the UK.
“This has been made possible by collaboration, determination, and a shared belief in the value and future of domestic manufacturing, which is a critical driver of Scotland’s economy.”
Scottish Enterprise Chief Executive Adrian Gillespie said: “This welcome announcement signals a strong commitment to supporting and retaining vital Scottish manufacturing expertise in an important, growing market.
“We’ve reached this outcome through partnership working at its best, and I’d like to thank everyone involved for their dedication. Scottish Enterprise looks forward to working with the company to build a successful future in Scotland.”
Alexander Dennis’s original consultation process was launched in June in response to a rapidly changing competitive landscape. The proposal announced today allows manufacturing operations in Scotland to continue and significantly limits the expected role reductions.
However, to improve its competitive position, Alexander Dennis continues to propose further changes to its business structure, with expectations that 11 roles not directly linked to Scottish manufacturing remain at risk of redundancy in the ongoing statutory consultation.
Images of announcement
Image 1: First Minister John Swinney speaks to Alexander Dennis team members
Images 2+3: Alexander Dennis President & Managing Director Paul Davies speaks to team members
Image 4 (left to right): Scottish Enterprise Chief Executive Adrian Gillespie, Alexander Dennis President & Managing Director Paul Davies, First Minister John Swinney, and NFI Group Chair of the Board of Directors Colin Robertson CBE
Images of the Alexander Dennis facility in Larbert
Forward-looking statements
This press release may contain forward-looking statements relating to expected future events and financial and operating results of NFI that involve risks and uncertainties. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and economic conditions of and funding availability for customers to purchase buses and to purchase parts or services; the ability of customers to suspend or terminate contracts for convenience, and disruption to and shortage of labor supply; and the other risks and uncertainties discussed in the materials filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedarplus.ca.
Due to the potential impact of these factors, NFI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.