The deal secures hundreds of jobs

He said: "There are already signs that 2001 will be a tough year in the bus business but having said that we are about to conclude negotiations involving more very significant orders."

Stagecoach has ordered 184 double-deckers, 102 midi-buses and 50 single-deckers.

Mayflower received the go-ahead two weeks ago for a joint venture that will merge its UK bus and coach operations with those of Henlys Group, in which Mayflower will hold a 70% stake.

Stagecoach chief executive Keith Cochrane said the single-deckers would go to the regional companies and the remainder would be sent to London.

Mr Cochrane said: "We have always been delighted with the quality of buses produced by our friends at Alexander and we are pleased to be able to expand our fleet with buses made in Scotland."

Stagecoach runs 12 bus companies in the UK from Inverness to Exeter as well as operating South West Trains.

Media conference

It also has companies in several other countries including the United States.

The announcement of the order coincided wth a visit to the plant by Chancellor Gordon Brown.

Spokesmen from the two companies denied that they were letting the chancellor use his visit to political advantage in the run-up to next week's Falkirk West by-election.

They said that the companies would have been happy to hold a similar media conference and photo opportunity with politicians from any of the main political parties over the announcement of the new order.