The funding will support a company-run furlough scheme until new work can commence.

First Minister John Swinney confirmed the funding during a visit to the site. He 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.

“To access the Scottish Government funding, the company will need to provide evidence of orders that will enable its manufacturing to continue in Scotland. Although the details are commercially sensitive, I am aware Alexander Dennis is working hard to do that.

“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.

“It is essential we protect the skilled manufacturing jobs we need to build our transition to a green industrial economy.”

Alexander Dennis president and managing director Paul Davies said: “We are deeply grateful for the Scottish Government’s commitment to preserving jobs, skills, and industrial capability in the region.

“This announcement marks a turning point. The Scottish Government’s support allows us to propose a new outcome to our statutory consultation.

“This has been made possible by collaboration, determination, and a shared belief in the value and future of domestic manufacturing.”

Scottish Enterprise chief executive Adrian Gillespie said: “This welcome announcement signals a strong commitment to supporting and retaining vital Scottish manufacturing expertise in an important, growing market.

“We’ve reached this outcome through partnership working at its best, and I’d like to thank everyone involved for their dedication. Scottish Enterprise looks forward to working with the company to build a successful future in Scotland.”