Falkirk’s Alexander Dennis factory in Mexico City bus deal

August 23 2017, 12.13amUpdated: August 23 2017, 4.51pm
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A bus factory in Falkirk will help build 90 double deckers for export to Mexico as part of a £44 million deal, Prime Minister Theresa May will announce.

The Alexander Dennis factory will construct the bodies of 90 low-emission buses and the chassis will be made at firm’s base in Guildford, Surrey, before the vehicles are shipped to Mexico City to cut congestion and pollution on the historic Paseo de la Reforma.

The one billion Mexican Pesos (£44 million) contract, which supports 1,000 existing jobs at the Falkirk site, was secured after the UK Government stepped in to ensure the private buyer could access finance to purchase the buses.

UK Export Finance, part of the UK Government’s Department for International Trade, provided a buyer credit guarantee on a loan form Santander to the buyer, a private Mexican firm operating a route for the City of Mexico’s bus system.

The new buses are lightweight, fuel-efficient and have double the seats of those currently used and will be on the road from the end of the year.

Alexander Dennis is one of nine Scottish-based companies that have received a combined £85 million of the £1.7 billion UK Export Finance has given in financial backing since it was created last summer

UK International Trade Secretary Liam Fox said the department is ” putting export finance at the heart of trade promotion”.

He said: “The £1.7 billion in financial support since last summer has helped 137 companies secure deals around the world, in 40 local currencies including the Mexican Peso. This has made buying from the UK and Scotland more attractive than ever.

“There is global appetite for British goods and expertise, and Scottish firms such as Alexander Dennis are taking advantage of the opportunities in fast growing markets like Mexico, securing deals that will boost the UK’s exports and safeguard jobs back home.”

Colin Robertson, Alexander Dennis Limited chief executive said: “Our ability to offer finance from UK Export Finance in Mexican Pesos was a significant benefit to our buyer, helping us win this major contract.”

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