Alexander Dennis secures £100m National Express order
National Express said the deal represented "a major step forward" in revitalising its bus fleets
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."
'Added bonus'
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.