Bus firm in merger move

Managers believe Falkirk has a secure future

A merger has raised questions over the future of Falkirk-based bus builder Alexander, which employs 950 people.

Alexander's parent company Mayflower is merging with its rival, Henlys, creating a group called Transbus International.

The combined business will control the Alexander, Dennis and Plaxton brands and will employ about 3,350 people.

A review of operations will be undertaken after the deal is finalised and a decision taken then on where buses will be built.

A bus built by Alexander

Management and unions met in Falkirk to discuss the future but executives believe it will stay open.

Alexanders, which builds buses for customers like DAF and Volvo, employs most staff in Falkirk and some in Larbert.

Mayflower chief executive John Simpson said: "The formation of TransBus International will ensure that the UK retains a strong bus and coach industry and provides a unique platform to expand geographically and compete effectively."

The company said bus sales in its traditional UK, Hong Kong and Singapore markets were showing signs of slowing down as bus operators reached the target age for their fleets.

Against this, Mayflower said the UK Government's recent spending announcement could see a reversal of this trend over the next 10 years.

It added that export sales to the rest of the world were projected to increase threefold to £34m in the current year.