Saskatchewan Transportation Company is buying a new line of buses made in China and assembled in the United States.

The Stallion has only 27 seats, but cost $350,000 each, about half the price of a Canadian-made bus.

Shawn Grice, president of the Crown corporation, says the company is looking for ways to run more efficiently.

He says the company thinks the smaller coach model will be economical and will meet the needs of the customers.

The company operates three main terminals in Regina, Saskatoon and Prince Albert and has 197 rural agencies across the province.

With files from The Canadian Press