Bus company Alexander Dennis is proposing to close its Falkirk plant and convert its manufacturing plant in Larbert, with up to 115 jobs at risk of redundancies.
However, the company said the proposal would safeguard around 200 skilled manufacturing jobs and support jobs that were previously at risk of redundancy.
The company said the proposals would allow it to “better align with the current market” and represent the “best possible outcome” in the current climate.
It comes after the Scottish Government stepped in in 2025 to fund a furlough scheme for Alexander Dennis staff after the company announced it was considering consolidating its operations into a single site in Yorkshire, putting around 400 jobs at risk.
It is understood that around 85 employees have since left the business.
Alexander Dennis has now announced that it is consulting on plans to convert its Larbert manufacturing plant into a chassis manufacturing site, supporting all of its low and zero emission bus products, while the company would close its Falkirk facility.
Paul Davies, chairman and managing director of Alexander Dennis, said: “We propose 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 allow us to better align with the current market while 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 support of the furlough scheme to secure these jobs, keeping skills and manufacturing capacity in central Scotland.
“We will continue to work with the Scottish Government, its agencies and 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 capacity in Scotland.”
Alexander Dennis said the UK's domestic bus manufacturing sector has lost significant market share by 2025.
More than half (51%) of all zero-emission buses purchased in the UK come from overseas manufacturers, the company said.
Davies said: “We continue to repeat the same calls for both governments to level the playing field, recognize the cost of manufacturing in the UK and the fact that these higher costs flow through the supply chain.
“Manufacturing in this country needs better support if we are to generate the economic benefit the country so badly needs.”
Last week, it was announced that Alexander Dennis Limited (ADL) will take 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 to buy the Falkirk-based manufacturer.
Responding to news of the consultation, a Scottish Government spokesperson said: “The Scottish Government remains in regular contact with Alexander Dennis and the unions and is keen 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 make a claim for up to £4.1 million of funding from the Scottish Government to support its staff furlough scheme, subject to conditions being met. No claims have yet been received.”
The UK government has been asked for comment.
