A LUXURY coach builder that was twice in danger of closing is gearing up for growth, in a move that will create more than 50 jobs.

Plaxton, based in Scarborough, North Yorkshire, is investing £1.2m as it re-enters the bus market after a four-year hiatus.

The city bus model, named Centro, is its first venture into bus manufacture since its former parent company, Transbus, switched production to a plant in Scotland in 2001, with more planned in the coming years.

Chief executive Brian Davidson said: "Now we are independent from Transbus, we have the freedom to launch our own products.

"It will be low volume at first because we want to get it right. These will provide a secure future for our workforce."

The firm, which underwent a management buy out last year, is recruiting 50 workers and taking on six apprentices as part of the expansion.

Mr Davidson led the buy-out last May, after Transbus went into administration.

In its first full year of trading, the business turned over £47m and management aims to increase this by 15 per cent in 2006.

"We are trading ahead of our budget forecasts," said Mr Davidson.

"We have demonstrated to our customers that the changes which have taken place in the business have improved our quality and our responsiveness."

Plaxton has been in the town for 97 years.