First Minister John Swinney confirmed that talks are ongoing over a potential new manufacturing deal, but cited “commercial sensitivity” for not providing specific details. The move comes after the company announced plans last month to consolidate its UK operations at its facility in Scarborough, North Yorkshire.

Mr Swinney said: “Scottish Ministers place the utmost importance on the presence of Alexander Dennis in Scotland and the retention of its highly skilled manufacturing workers.

“The Scottish Government has committed to exploring any and all viable options throughout the consultation period to allow the firm to retain its skilled employees and manufacturing and production facilities.

“While I cannot provide details due to commercial sensitivity at this time, I hope this update provides the workforce and local community with further assurance that the Scottish Government remains wholly committed to supporting the future of bus manufacturing in Scotland.

“We will undertake this work in tandem with every other short, medium and long-term opportunity we continue to explore in close collaboration with the company, Unite, GMB, Scottish Enterprise, Transport Scotland and the UK government.”

Deputy First Minister Kate Forbes is scheduled to update representatives from the GMB and Unite unions on the progress of the discussions.

The company’s managing director, Paul Davies, previously told MSPs that securing contracts for 70 new buses this year and 300 next year would be necessary to maintain operations in Scotland. A consultation on the proposed move has been extended until 15 August.