Nearly 100 workers at a Fife firm that supplies parts to bus manufacturer Alexander Dennis have been told they are at risk of being made redundant.
Dunfermline-based Greenfold Systems told 90 members of staff on Friday that their jobs could go as a knock-on effect of Alexander Dennis planning to move its operations to England.
Greenfold Systems constructs the sides, interdecks and roofs of buses for the Alexander Dennis factories in Falkirk and Larbert.
Business and Employment Secretary Richard Lochhead said he was “very disappointed” to learn about the job threat and offered Scottish government assistance to the firm and its workers.
Earlier this month, Alexander Dennis announced 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.
The wider economic impact of any closure would be felt among the suppliers to the plants, such as Greenfold Systems.
News of the redundancy threat was first reported by The Courier.
Greenfold’s managing director Craig Waterson told the newspaper that Alexander Dennis was a “sizeable customer” and added it was a “difficult situation” for the company.
He added: “What happens with Alexander Dennis remains to be seen. We would, of course, like a clearer answer but we’re not going to get one any time soon.
“A communication has been issued to staff, essentially telling them that their jobs are at risk as a result of the Alexander Dennis situation.”
The managing director of Alexander Dennis has said that orders for hundreds of new vehicles may not be enough to keep its Scottish sites open.
Speaking to MSPs, Paul 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.
‘Difficult time for the employees’
Business and Employment Secretary Richard Lochhead said: “I am very disappointed to learn that Greenfold Systems Ltd has entered into consultation with a view to making redundancies at its Dunfermline site.
“This will be a difficult time for the employees at risk of losing their jobs, their families and for the local area. Scottish Enterprise will engage with the company to better understand the reasons for this decision and whether it can offer any assistance.
“The people affected by this announcement are our immediate priority and the Scottish government will do everything in its power to help those affected through our initiative for responding to potential redundancy situations, Partnership Action for Continuing Employment.”
Greenfold Systems has been approached for comment.