ALEXANDER Dennis has won a £21 million contract from FirstGroup to build 117 buses as the Aberdeen-based company boosts its fleet in Scotland.

The deal, which underpins Falkirk-based ADL's long-standing relationship with the transport giant, is part of a £77.7 million order placed by FirstGroup for 385 new buses.

ADL is building a mixture of double deckers, single deckers and midis, each fitted with ultra-clean Euro 6 engines.

The deal will help support 2000 ADL jobs around the UK and twice that number in its supply chain.

First Group, which said the new buses will enter service from this summer, will deploy the vehicles across its three operations in Scotland. First Glasgow will take 75, First Scotland East will receive 31, and First Aberdeen will use 7 of the new buses.

Five double-decker buses, all fitted with flywheel technology originating from Formula 1, are scheduled to operate in Stirling.

ADL chief executive Colin Robertson said: "We are delighted to have won this very significant order and to be continuing our long-established and thriving relationship with FirstGroup.

"This latest order is a huge endorsement of our new-generation, market-leading midi and double deck buses and a further demonstration of FirstGroup's commitment to the green technologies of tomorrow.

"In addition, it should not be forgotten that orders like this support 2,000 ADL jobs in the UK and thousands more in our extensive supplier network."

Northern Ireland-based Wrightbus company will manufacture 248 of the 385 new buses ordered by FirstGroup.

Volvo will build for FirstGroup 20 double-decker chassis in Sweden, with the bodies manufactured by Wrightbus. The investment also includes two "virtual electric" or part-hybrid, part-electric buses, which will enter service in Bristol from December.

All of the vehicles are due to come into service in FirstGroup's current financial year, all equipped with wi-fi and leather seats.

Dave Alexander, regional managing director of First in Scotland, said: "Our strong level of investment in over 100 new vehicles for Scotland is great news for our customers and underlines our continuing determination to provide ever better bus services in our area and encourage more people to travel by bus. These new vehicles will be among the best and most eco-friendly in the country.

"Passengers can enjoy pleasant, more comfortable journeys and keep connected on the move with our free wi-fi, while we support the efforts of our local authority partners to improve air quality for all."

The First Group deal comes shortly after Stagecoach awarded a contract to ADL to supply 70 per cent of an order for 470 new vehicles. That £80m investment was hailed as a vote of confidence in Scottish manufacturing.

Newspaper speculation this month suggested Stagecoach co-founder Sir Brian Souter was considering selling his majority stake in ADL.

It was reported that the sale of the 55 per cent stake - held by Sir Brian and sister Ann Gloag through Highland Global Transport - could fetch £300m.

In recent months ADL has landed major contracts from GKN and Metrolinx of Canada, as well as Stagecoach.

The most recent accounts for ADL at Companies House show that the business returned to the black in 2014 when it made a £13.2m pre-tax profit, compared with a loss of £1.2m in the preceding year. And it said its current year had begun brightly, with 450 buses sold in the UK in the first four months - around twice as many as in the same period last year.