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More than 80 jobs lost at supplier to bus maker

BBC Two vans and a truck sit in the factory car park, with a Greenfold Systems sign at the gated entry.BBC
Dunfermline-based Greenfold Systems constructed the sides, interdecks and roofs of buses for Alexander Dennis

More than 80 workers at a Fife firm that supplies parts to bus manufacturer Alexander Dennis have been made redundant after it entered administration.

Dunfermline-based Greenfold Systems told workers last month that their jobs could go as a knock-on effect of Alexander Dennis planning to move its Scottish operations to England.

Greenfold Systems constructs the sides, interdecks and roofs of buses for the Alexander Dennis factories in Falkirk and Larbert.

The company employed a total of 90 staff, with nine staying on a short-term basis to compete a customer contract.

Alexander Dennis announced in June it was planning to move its full operation to a site in Scarborough, North Yorkshire.

The plan would see its sites in Falkirk and Larbert close with the loss of 400 jobs.

A wider economic impact of any closure would be felt among the suppliers to the plants, such as Greenfold Systems, which entered administration on Thursday.

Callum Carmichael and Michelle Elliot of FRP Advisory, and Shona Campbell of Henderson Loggie LLP, were appointed as administrators.

"The business entered administration following the withdrawal of this key contract, which rendered the company unsustainable," they said.

PA Media A lot of double decker buses parked outside at a manufacturing warehouse.PA Media
Bus manufacturer Alexander Dennis has proposed moving operations from Scotland to England

The managing director of Alexander Dennis, Paul Davies, previously said that orders for hundreds of new vehicles may not be enough to keep its Scottish sites open.

Speaking to MSPs, Mr Davies said the company would need to win orders for at least 70 new buses this year and 300 next year to keep its Falkirk and Larbert operations going.

But he said this alone may not be sufficient and he could not commit to keeping the sites open.

Callum Carmichael, joint administrator of Greenfold Systems Ltd and partner at FRP, described the company as a "well-regarded business".

"Unfortunately, the loss of a major customer contract had an immediate and severe impact on its financial position," he said.

"Our priority now is to support the affected employees and to maximise returns for creditors."

Greenfold Systems and Alexander Dennis have been approached for comment.