Bus manufacturer Alexander Dennis says it will keep its Scottish sites open after the Scottish government pledged £4m towards a furlough scheme.
The company had set previously out plans to close its facilities in Falkirk and Larbert, with the loss of 400 jobs, and move production to Yorkshire.
First Minister John Swinney confirmed the support, which will need “evidence of sufficient orders to sustain its operations in Scotland” by the company.
The furlough scheme will run for 26 weeks to enable Alexander Dennis to bring manufacturing back online.
On a visit to the bus company’s site in Larbert, the first minister said: “The Scottish government wants to retain the manufacturing workforce of Alexander Dennis.
“My officials have discussed detailed terms with management and reached agreement on the principles of a company run furlough scheme.
“This is intended to act as a bridge to a sustainable future for the company in Scotland.
“During this period, training will also be offered by Scottish Enterprise.”
Alexander Dennis said it had seen increased demand for its single and double-deck buses in recent weeks.
It said it was “confident in the placement of further orders to support Scottish manufacturing,” but details remained commercially sensitive.
The company’s managing director Paul Davies said the announcement marked “a turning point” which would save “hundreds of jobs”.
He said: “Together with our team members’ acceptance of new terms and conditions through the trade union ballot, and the confidence we have in securing new orders, we will be able to keep our manufacturing sites in Larbert and Falkirk open and operational.”
