Business

MP reacts as Alexander Dennis will not move all bus production to Scarborough

By Anttoni James Numminen and Local Democracy Reporting Service,Anttoni James Numminen, Local Democracy Reporting Service

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MP reacts as Alexander Dennis will not move all bus production to Scarborough

Alexander Dennis (AD) had planned to close its facilities in Falkirk and Larbert, with 400 jobs at risk, and to move all bus body manufacturing to its site in Scarborough. However, a £4m furlough agreement with the Scottish Government will allow the company to bring its manufacturing back online in Scotland. AD, the world’s largest manufacturer of double-decker buses and Britain’s biggest bus builder, has blamed increased competition from Chinese electric bus manufacturers for the need to make cuts. Scarborough and Whitby’s MP said it was “vital that we support UK bus manufacturing by buying British buses” and called for public sector procurement to be “strengthened as soon as possible to include social value”. Around 700 people are employed in manufacturing and non-manufacturing roles at AD’s Scarborough facility. MP Alison Hume said: “It is really good news for the Scottish workforce and investment in the company that Alexander Dennis’s manufacturing sites in Scotland are remaining open and operational. “The furlough scheme will give the company time to secure new orders, which will also benefit the main factory in Scarborough, which employs over 700 people.” Speaking to the Local Democracy Reporting Service (LDRS), she added: “Alexander Dennis has been warning about various threats to their business, such as competitive imbalance, the increasing market share of Chinese manufacturers and an absence of incentives for British-built vehicles.” Euan Stainbank, the MP for Falkirk, said the furlough scheme was “a huge win for the workers at Alexander Dennis in Falkirk”. He added: “I’ve fought from day one for the sector as Falkirk’s MP and Co-Chair of the British Buses APPG, challenging procurement failures, pushing for a reliable pipeline of orders and policy change. “This result proves what can be achieved when government, industry, and unions work together – rather than neglecting our domestic sector.” The company said it had seen “increased demand for its single and double-deck buses in recent weeks, and is confident in the placement of further orders to support Scottish manufacturing”. Both MPs have backed changes to procurement rules, with Ms Hume previously asking the chancellor to “use public procurement to back British companies such as Alexander Dennis to boost economic growth”. Speaking to the LDRS, she added: “This way we will reward local employment, skills development and sustainable practices as well as growing the UK economy.”