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Bus firm Alexander Dennis is proposing to shut its Falkirk site and convert its Larbert manufacturing facility, with up to 115 jobs at risk of redundancy.

However, the company said the proposal would safeguard about 200 skilled manufacturing and support jobs which were previously at risk of redundancy.

The company said the proposals would enable it to “better align with the current market” and represent the “best possible outcome” in the current climate.

It comes after the Scottish Government in 2025 stepped in to fund a furlough scheme for staff at Alexander Dennis after the firm announced it was considering consolidating its operations at a single site in Yorkshire, putting about 400 jobs at risk.

It is understood that about 85 employees have since left the business.

Alexander Dennis has now announced it is consulting on plans to convert its Larbert manufacturing facility to a chassis manufacturing site, supporting all of its low-emission and zero-emission bus products, while the company would close its facility in Falkirk.

Paul Davies, Alexander Dennis president and managing director, said: “We are proposing to retain jobs and restart manufacturing at Larbert with a focus on chassis manufacturing.

“This represents the best possible outcome for our business, employees, customers and supply chain partners in the current climate.

“This new approach would enable us to better align with the current market whilst improving our efficiency. It also allows us to continue to adapt to rapidly changing and challenging market dynamics.

“We remain grateful to the Scottish government for the furlough scheme support to secure these jobs, maintaining skills and manufacturing capability in central Scotland.

“We will continue to work with the Scottish Government, its agencies and the trade unions to support staff during the consultation period.

“We are absolutely committed to doing the right thing by our team members and our stakeholders to protect jobs, invest in our business and maintain strategically important manufacturing capability in Scotland.”

Alexander Dennis said that the UK domestic bus manufacturing sector has lost significant market share in 2025.

More than half (51%) of all zero-emission buses purchased in the UK are sourced from overseas manufacturers, the company said.

Mr Davies said: “We continue to repeat the same calls to both governments to level the playing field, recognise the cost of manufacturing in the UK and the fact that these higher costs flow through the supply chain.

“Manufacturing in this country needs to be better supported if we are to generate the economic benefit that the country so badly needs.”

Last week, it was announced that Alexander Dennis Limited (ADL) is due to receive orders for more than 100 zero emission vehicles through a Scottish Government scheme.

Transport Scotland announced £45 million in Government cash for five bus operators, with Rock Road and Lothian Buses set to purchase from the Falkirk-based manufacturer.

Speaking to the Press Association in Stirling, First Minister John Swinney said he was “very concerned” by the news.

He said: “We’ve just allocated an award of 100 new buses to take forward the work of the company,” he said.

“Obviously, there are some significant issues around about procurement issues that remain outstanding that have to be resolved by the United Kingdom Government and I would encourage the UK Government to fulfil their promises and their commitments to Alexander Dennis by reforming those arrangements in relation to procurement.

“We’ll work with the company to secure continuity of employment as far as we can do so in working to secure the future of the plant.”

Scotland’s Deputy First Minister Kate Forbes called for action from the UK Government.

She said: “It is vital that the UK Government ensures a long-term pipeline of orders and a supportive approach to reserved matters such as subsidy and procurement.

“A first step would be changes to the Subsidy Control Act 2022 in order to create that pathway for procurement reform.

“The future viability of companies such as Alexander Dennis with a long history and commitment to Scotland depends on the UK Government acting now.”

Scottish Labour leader Anas Sarwar said: “When Scotland needs more buses built by Scottish firms, it is devastating to see Alexander Dennis downscale and workers’ lives thrown into uncertainty. My thoughts are with every worker and family affected.

“But just six days ago, John Swinney used Scottish taxpayers’ money not to stand up for Scottish workers, but to subsidise jobs halfway around the world.

“John Swinney’s failure on buses – like his ferry fiasco – is both bad leadership and bad economics. These avoidable job losses should be on his conscience and have happened on his watch.”

Scottish Liberal Democrat Falkirk West candidate, Lucy Smith, said: “Just days after Transport Scotland announced millions of pounds in support for Alexander Dennis we get the terrible news that more than a hundred workers in Falkirk are at risk of redundancy.

“It’s ridiculous that the SNP Government are sending money to Chinese bus and coach manufacturers while Scottish jobs are chucked on the scrap heap.”

Scottish Conservative candidate for Falkirk West Neil Benny said: “The closure of the Alexander Dennis site at Falkirk is a devastating blow for the local community, with 115 jobs at risk.

“SNP ministers have overpromised and underdelivered as usual, boasting about a furlough scheme that has failed to protect workers long-term – despite millions of pounds of taxpayers’ money being spent.

“The SNP have let workers down in Falkirk.”

Unions have reacted angrily to the proposals.

Sharon Graham Unite general secretary said the news is “shattering”.

She said: “It is an economic shock which the company has chosen to inflict on the workforce and the wider community when it has other viable options. This doesn’t need to happen.”

Robert Deavy, GMB senior organiser in manufacturing, said: “How many Scottish jobs must be lost and factories closed before our governments understand the risks of sending contracts around the world?”

He added: “We are losing crucial skills and supply chains and that, in such an uncertain world, is economic madness and a senseless risk.”

Responding to news of the consultation, a Scottish Government spokesperson said: “The Scottish Government remains in regular contact with Alexander Dennis and trades unions and stands ready to discuss all options, across a range of areas, to protect skilled jobs and achieve the best economic outcome for Scotland.

“The company retains the option to evidence a claim for up to £4.1 million of Scottish Government funding to support its staff furlough scheme, subject to conditions being met. No claim has yet been received.”

The UK Government has been asked for comment.