NFI's Alexander Dennis's Scottish sites to remain open

Executive Summary

• NFI Group’s subsidiary, Alexander Dennis, has announced it will maintain its bus manufacturing operations in Scotland (Larbert and Falkirk sites) following a proposal supported by the Scottish government, Scottish Enterprise, and trade unions.
• The decision averts significant job losses and allows for the continuation of manufacturing, driven by increased demand for single- and double-deck buses and a new furlough scheme to sustain capacity during lead times.
• Financially, NFI expects to reduce a previously recorded $14.9 million restructuring provision in its Q3 2025 results, though 11 non-manufacturing roles remain at risk of redundancy.

Key Details

• Operational Status: Alexander Dennis intends to keep its Scottish manufacturing sites in Larbert and Falkirk open and operational.
• Government Support: The proposal was enabled by advocacy from the Scottish government and Scottish Enterprise, confirmed by First Minister John Swinney on Sept. 15, 2025.
• Workforce Measures:
  • A furlough scheme for roles required to sustain future manufacturing capacity will run for 26 weeks to enable lead times to get manufacturing back online.
  • The announcement saves hundreds of jobs and supports 1,000 suppliers throughout the U.K.
  • 11 roles not directly linked to Scottish manufacturing remain at risk of redundancy as part of ongoing statutory consultation to improve competitive position.
• Market Demand: Alexander Dennis has seen increased demand for its single- and double-deck buses recently, with confidence in placing further orders (details commercially sensitive).
• Financial Impact:
  • NFI’s 2025 financial guidance remains unchanged.
  • NFI expects to reduce a $14.9 million restructuring provision originally recorded in Q2 2025, with this adjustment reflected in the third quarter 2025 financial results.
• Context: The original consultation process was launched in June in response to a rapidly changing competitive landscape.

Notable Quotes

• Paul Davies, Alexander Dennis President and Managing Director: "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."
• Adrian Gillespie, Scottish Enterprise Chief Executive: "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..."