More than 80 jobs have been lost a Fife-based manufacturing company after the announcement bus firm Alexander Dennis could move its operations south of the border.
Greenfold Systems, based in Dunfermline, built parts for buses, with the Falkirk-based Alexander Dennis being a “major customer” for the firm.
But on Thursday, administrators were called in, with 81 of the 90 jobs at the company axed, with the remaining staff kept on temporarily.
Alexander Dennis announced last month the launch of a consultation which could eventually see 400 jobs lost in the area if the company’s operations were consolidated into a single site in Yorkshire.
The consultation has since been extended by two weeks and will close on August 15, with the company assuring MSPs the decision was not a “done deal”.
But it has already had a knock-on impact on the supply chain with the collapse of Greenfold.
Callum Carmichael, a joint administrator for the firm and a partner at FRP Advisory, said: “Greenfold Systems was a well-regarded business that had carved out a specialist role in the commercial vehicle supply chain.
“Unfortunately, the loss of a major customer contract had an immediate and severe impact on its financial position.
“Our priority now is to support the affected employees and to maximise returns for creditors.”
Scottish business minister Richard Lochhead said: “I am very disappointed to learn that Greenfold Systems Ltd has entered into administration.
“This will clearly be a very difficult time for workforce and their families.
“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.
“We continue to explore all viable options to support Alexander Dennis Ltd, its workforce and the wider businesses and communities they support.
“We are doing this at pace and in close collaboration with the company, trade unions, Scottish Enterprise, Transport Scotland and the UK Government.”
Alexander Dennis has been contacted for comment.
