A Tauranga based bus company is about to increase its staffing levels by 50 per cent and inject $10 million worth of wages into the region's economy after being awarded a contract to assemble 120 new buses.

Kiwi Bus Builders managing director Richard Drummond stands next to a bus being made for the Rugby World Cup. These vehicles are not part of the latest contract.

Located in Greerton, Kiwi Bus Builders has won the contract to assemble buses for the country's largest bus operator, Auckland based company New Zealand Bus.

Kiwi Bus Builders managing director Richard Drummond says the contract will provide a boost for the company and Tauranga's economy.

'The planets have aligned for us. If you take it in numbers of vehicles, we are already building 80 to 90 a year and in the next 12 months we will build 200 – so it will more than double our production.”

The company employs 110 people, but the new contract means 50 extra people need to be hired.

For most of its contracts, Kiwi Bus Builders will design, build and assemble buses from scratch.

The new contract is a first for the company because the bus parts will be built by British bus builder Alexander Dennis Limited.

The parts will be shipped to Tauranga at the end of March or early April and assembled by staff at Kiwi Bus Builders.

'We chose to partner it up this way. This way we can build a large number of vehicles in a short time using these kit sets without having a massive employment force.”

Richard says they will start advertising for positions next week.

A range of jobs are being sought, including technicians, assemblers, quality controllers, supervisors and painters.

The company is building a new facility at The Lakes allowing the 120 new buses to be built alongside the 80-90 buses the company already constructs each year.

Priority One CEO Andrew Coker says the contract is an exciting development for Tauranga.

'This is an indication of the advantages this region offers businesses such as bus companies.

'We have the industrial space, savvy developers, semi skilled and skilled labour and that makes it attractive for businesses to come here rather than somewhere like Auckland,” says Andrew.

New Zealand Bus is spending $50 million to build the new buses and hopes to have a large proportion of the fleet built before the Rugby World Cup.

Richard says three to four buses will be completed every week once its new facility is operational.

The buses will be used for public transport in Auckland and are described as lighter, taller and more comfortable.

New Zealand Bus CEO Bruce Emson says the new fleet will have a Euro five standard plus rating and the emissions from the diesel engines will be significantly less than from standard buses.