Bus manufacturer Alexander Dennis says it will keep its Scottish sites open after the Scottish government pledged £4m towards a furlough scheme.

The company had set previously out plans to close its facilities in Falkirk and Larbert, with the loss of 400 jobs, and move production to Yorkshire.

First Minister John Swinney confirmed the support, which will need “evidence of sufficient orders to sustain its operations in Scotland” by the company.

The furlough scheme will run for 26 weeks to enable the company to bring manufacturing back online.

On a visit to the bus company’s site in Larbert, the first minister 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.

“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.”