Buses will be eligible for US$150,000 government subsidy.
Contract includes a firm order for 35 XN40 and 20 XN60 Xcelsior buses.
Contract is valued at $2.4 million.
Buses will be delivered in the second quarter of 2015.
Bus maker awarded contract for 70 of its 60-foot diesel-electric heavy-duty transit buses.
Bus manufacturer New Flyer Industries plans to open an Ontario parts distribution centre for its heavy-duty bus customers in the Greater Toronto/Hamilton area sometime this year.