WINNIPEG - Bus builder New Flyer Industries Inc. is teaming with British counterpart Alexander Dennis Ltd. to introduce a North American medium-duty low-floor bus.

The so-call "midi bus" will be specifically developed and tested to a 10-year operational life.

The strategic partnership is aimed at building on New Flyer's North American market leading position and the midi bus design expertise of Alexander Dennis, which has delivered more than 16,000 of this class of bus to customers throughout the United Kingdom, Hong Kong, New Zealand and Australia.

"Transit operators are faced with unprecedented pressure to operate and adapt their fleets in today's tough economic conditions," said New Flyer president and CEO Paul Soubry.

"With the escalating costs of fuel and maintenance, there are many of our transit customers' routes that do not require a full-sized, heavy-duty bus with a 12-year design life."

Soubry said the company also believes that private shuttle operators in North America are looking for a "high quality product" of this type.

New Flyer estimates the North American market for mid buses could be approximately 1,000 vehicles on an annual basis.

New Flyer will be responsible for sales, marketing, manufacturing and aftermarket support, while Alexander Dennis will do the engineering, testing and prototype development work.

Prototypes will be built this summer, with a planned market launch in early 2013 and be offered to both public transit and private operators. Propulsion system options will range from clean diesel to electric hybrid and compressed natural gas.

New Flyer is the leading manufacturer of heavy-duty transit buses in Canada and the United States with manufacturing facilities in Winnipeg and St. Cloud and Crookston, Minn.. It also has a parts fabrication facility in Elkhart, Ind., and four parts centres in Winnipeg, Erlanger, Ky., Fresno, Calif., and Brampton, Ont.

Alexander Dennis is Britain's biggest bus and coach manufacturer with build partnerships in Hong Kong, China and New Zealand.