The £4m furlough funding will protect 400 jobs in Camelon and Larbert in the short term while ADL continues to look for more orders.
Alexander Dennis has announced it intends to continue manufacturing buses in Scotland after the SNP Government provided a £4m furlough scheme to retain staff in the short term.
The company must provide evidence of sufficient orders to sustain its two factories in Camelon and Larbert to access the cash.
Announcing the deal John Swinney said the £4m was intended “to act as a bridge to a sustainable future for the company in Scotland”.
Alexander Dennis Ltd (ADL) previously announced its intention to close both of its factories in Falkirk and centralise its operations in the north of England.
Swinney 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.”
For the latest news and breaking news visit dailyrecord.co.uk
Get all the big headlines, pictures, analysis, opinion and video on the stories that matter to you.
Follow us on Twitter @Record_Politics – the official Record Politics Twitter account – real news in real time.
We’re also on Facebook – your must-see news, features, videos and pictures throughout the day from the Daily Record, Sunday Mail and Record Online.