UK bus-maker targets NZ manufacturing base

An Alexander Dennis Enviro200 bus. Photo / Wikimedia Commons, posted by user Arriva436

Infratil's NZ Bus has awarded its Auckland supply contract to British manufacturer Alexander Dennis, which says it will use the contract as a springboard into local manufacturing.

"Our aim is not simply to supply buses to New Zealand, but to become an active player in the county's manufacturing sector," said Alexander Dennis chief executive Colin Robertson in a statement.

NZ Bus will pay £25 million for 120 of Alexander Dennis's single-deck Enviro200 midi buses. That's the single-biggest investment since the Wellington-based infrastructure investment company acquired the public transport operator in 2005, and could lead to further deals in coming years.

The first of the 55-seat vehicles will arrive in time for the Rugby World Cup this year, with the remainder progressively introduced over the following 12 months.

"This is much more than just an important contract," said Robertson.

"It is the start of a significant business relationship that has the potential to see us deliver a further 200 to 300 buses into New Zealand in the next three to four years - and to use the location as a springboard into other territories, notably Australia,"

NZ Bus reviewed 38 options from nearly 30 manufacturers in New Zealand, Australia, China, Brazil and across Europe.

Alexander Dennis' Robertson said the manufacturer's buses will be shipped in parts to New Zealand, where Tauranga-based Kiwi Bus Builders will assemble the kit-sets.

NZ Bus representatives weren't available for comment.

Infratil shares were unchanged at $1.94 in trading today, and climbed 21 per cent last year.