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This item was published during the term of a previous administration that ended in April 2007

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Research and development support for businesses

14/03/2005

A substantial award of research and development support will help secure 750 Scottish jobs and pave the way for more, it was announced today.

First Minister Jack McConnell was speaking during a visit to Alexander Dennis Ltd (ADL). The Falkirk bus builder supply around 70% of London's 8000 strong bus fleet and are producing the first purpose built transit double deck buses to be sold in the USA for over 20 years.

While at the company, the First Minister confirmed that ADL will receive £800,000 from the Scottish Enterprise R&D Plus scheme. The money is being used to develop a new generation of buses and has played a critical role in the company securing over £120 million of orders since its formation in May last year.

ADL, formerly known as Transbus International, was acquired from administration by a group of prominent Scots. They announced a £10 million investment programme last year and are now recruiting another 40 employees.

Speaking at ADL, the First Minister said:

"ADL is a true Scottish success story. In the space of just 10 months it has gone from the brink of collapse to being a company that can compete across the world. Their commitment to research and development, their desire to design, engineer and build the buses of the future is at the heart of their success.

"Scotland needs more companies like ADL, companies that are prepared to invest in innovation, be forward thinking and, above all, have the confidence to take their products to the world.

"Scotland is a country that has always been blessed with talent - people with the brightest ideas and the energy and drive to succeed. We must use this talent to drive our country forward. Where we can support business we will. The challenge for industry is to grasp the opportunity of investing in the future."

Bill Cameron, Chairman of ADL, said:

"We have made remarkable progress in terms of re-building this business and I know that the confidence shown by our customers is linked directly to their knowledge of our plans for new-generation buses. These vehicles will lead the way in technology and innovation.

"The contribution and support we have received from the Scottish Executive has been a major factor in our ability to accelerate our new product development strategy. Innovation is not a luxury, it is a 'must do' for Scottish companies with aspirations to win business at home and abroad."

Janet Brown, Senior Director, Competitive Business at Scottish Enterprise said:

"It is vital for all companies to invest in research and development if they are to stay ahead of their competitors and secure their market share. I am delighted Scottish Enterprise has been able, through its R&D Plus programme, to support ADL's ambitious plans to do just that. This will allow them to build on their existing efforts which are already bearing fruit, as more new orders for buses are being secured."

The first scheme of its kind in the UK, R&D Plus is designed to actively support large companies engaged in new and innovative research into products and processes which demonstrate real potential for global commercial success. The Alexander Dennis project is the 9th offered support under R&D Plus powers. To date Scottish Enterprise and the Scottish Executive have committed around £11m in support to around £100m of forecast R&D expenditure by the companies assisted.

Page updated: Monday, March 14, 2005