MAJOR bus firm Alexander Dennis is no longer be shutting its Scottish site, after a multi-million pound furlough scheme was announced to support the retention of jobs.
The Falkirk-based manufacturer announced in June that it would be closing its Scottish site and moving to England, putting 400 jobs at risk.
However, bosses said on Monday that they intend to keep Scottish sites "operational and functional", thanks to the intervention of the Scottish Government.
First Minister John Swinney has confirmed approximately £4 million in funding towards a furlough scheme until work can recommence, during a visit to the bus company's site in Larbert on Monday.
In order to access the funding, the firm will need to provide evidence of sufficient orders to sustain its operations in Scotland.
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 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.”
Swinney added: “It is essential we protect the skilled manufacturing jobs we need to build our transition to a green industrial economy.”
The Scottish workforce at Alexander Dennis has already been reduced in recent years, with June's announcement putting approximately 22% of the firm's UK workforce at risk of redundancy.
While Monday's announcement means less roles are at risk of redundancy, it is understood 11 roles which are not directly linked to Scottish manufacturing remain at risk.
This is due to further proposals to change the firm's business structure, bosses said.
Paul Dennis, president and managing director of Alexander Dennis, said: “We are deeply grateful for the Scottish Government’s commitment to preserving jobs, skills, and industrial capability in the region.
"This announcement marks a turning point. The Scottish Government’s support allows us to propose a new outcome to our statutory consultation.
"This has been made possible by collaboration, determination, and a shared belief in the value and future of domestic manufacturing.”
Falkirk MSP Michael Matheson said the intervention from the Scottish Government was a "welcome milestone" in protecting manufacturing jobs in the area.
He said: “The announcement of this support package from the SNP Scottish Government to retain manufacturing jobs at Alexander Dennis will be met with relief from all workers, their families and the wider community around Falkirk and Larbert. “Over the past few months, the SNP Government has been working tirelessly with Alexander Dennis, trade unions, and the wider public transport sector to secure the company’s future in Scotland. “There is still much work to do but this is a welcome milestone in protecting the skilled manufacturing jobs here in Falkirk which will be vital in our transition to a green industrial 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.”
