The deal will see ADL, one of the worlds largest bus manufacturers, build 200 single deck buses per annum, representing turnover of around £660m over the next 10 years.
The joint venture agreement was signed today (21 October) during Chinese president Xi Jinping’s visit to the UK.
However, no sooner was the ink dry on the agreement when both companies confirmed that they are already in advanced discussions with a view to extending their alliance.
This would include the building of double deck buses, a sector in which ADL is a renowned world leader. If this happens, there is potential to triple the scale of the current deal to almost £2bn.
Colin Robertson, chief executive of ADL, said: "This is the start of an exciting journey with enormous potential and we are delighted to be working with BYD.
"Their expertise in electric vehicle technology is second-to-none, while we have a global reputation for robust, reliable, high performance vehicles that deliver what they promise – and are backed by world-leading parts and service support, both in the UK and international markets.
"The combined strengths of BYD and ADL create a powerful new alliance and I look forward to our business relationship flourishing in the years ahead.
"It is a fine example of British-Chinese co-operation and two innovative companies working together to create cleaner, greener transport solutions.
"It is also important to recognise that it is initiatives like this that help us support 2,500 ADL jobs and a further 1,500 in our build partnerships around the world."
ADL is the largest British-owned business in the UK automotive sector and in recent years has been one of the fastest-growing bus and coach manufacturers in the developed world.
The group anticipates further growth of circa 20% with turnover moving towards £600m this year. It employs 2,500 people globally and supports a further 1,500 jobs through its global build partnerships.
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