Alexander Dennis secures £100m National Express order
- 19 March 2014
- From the section Scotland business
Bus manufacturer Alexander Dennis Limited (ADL) has signed a £100m deal to produce 600 vehicles for National Express over the next five years.
The vehicles, which will be a mix of double deck and midi buses, will join National Express's fleets in the West Midlands and Dundee.
Under an exclusive arrangement, Falkirk-based ADL will also supply replacement parts for the buses.
The first 100-plus low-emission vehicles will be delivered during 2014.
A further 125 buses are expected to be delivered each year between 2015 and 2018.
'Major step forward'
Peter Coates, managing director of National Express UK Bus, said: "This multi-year contract represents a major step forward in terms of revitalising our bus fleets - and in the way we do business.
"By working exclusively with ADL we can harness the vast wealth of knowledge within our various engineering teams, improve vehicle reliability and performance, and give our customers better service.
"In parallel with this, we have clear visibility in terms of costs, planning and vehicle replacement programmes, as well as the opportunity to work with and to influence ADL in the way they design and engineer the vehicles of the future."
ADL chief executive Colin Robertson said his company was delighted to take its business relationship with National Express "to a new level".
He added: "Multi-year contracts make so much sense for everyone involved. They give both parties a clear profile of expectations, forward build programmes and financials.
"An added bonus is that they release our best and brightest people, on both sides, to pursue new business growth opportunities, rather than being locked into months of repetitive tender negotiations annually.
"My instinct is that in the years ahead we will see changes in the way we do business and more 'partnerships' of this nature developing in the bus industry."
ADL has been growing at a rapid pace over the past six years, having tripled turnover to more than £500m over that period.
It employs 2,300 people globally, 900 of which are based in Falkirk, and has a significant presence in Hong Kong, China, Malaysia, New Zealand, Australia, the USA and Canada.