JCB in €180 million UK expansion

Construction equipment manufacturer JCB plans to invest £150 million (€180 million) over five years to expand its operations in Staffordshire, UK.

The funds will support construction of a new 32,516m² factory for JCB Cab Systems in Beamhurst, near Uttoxeter, to replace the current smaller facility in Rugeley. JCB said the new building would enable it to in-source production of cabs currently made by third party suppliers in Europe.

In addition, the investment will support expansion of JCB’s production operations in Rocester with an additional 11,706m² of manufacturing space to increase hydraulic cylinder production.

Furthermore, a new 20,439m² factory will be built on the Harewood Industrial Estate in Cheadle, Staffordshire. This facility will expand JCB’s existing earthmoving and compact products operations, and allow utility products to relocate to this site from the current smaller factory elsewhere in the town.

JCB’s existing finance and insurance offices in Rocester will also be relocated to new purpose-designed office accommodation at nearby Harper Meadow in Denstone.

A new in-house training facility for JCB staff will also be established, to be run in conjunction with key universities to support apprenticeship and graduate training programmes.

JCB said the growth plans were part of a wider, global strategy to expand sales and increase market share.

It said projected growth in machine output from the Staffordshire factories would be supported by an increase in production of components from factories elsewhere in the UK, including engines from JCB Power Systems in Foston, Derbyshire, and axles and gearboxes from JCB Transmissions in Wrexham, North Wales.

JCB chairman Lord Bamford said, “Our plan to create 2,500 high-quality manufacturing jobs locally is clear evidence of the important link between infrastructure improvement and job creation.”

Lord Bamford also referred to the UK government’s new national infrastructure plan, which proposes over £375 billion (€451 billion) of public and private investment.

“[UK Chancellor of the Exchequer George Osborne’s] decision to invest in the regional infrastructure means JCB can continue to invest locally, which is good for Staffordshire and good for Britain, especially given the wider benefits to our UK supply chain,” said Lord Bamford

“The Chancellor’s announcement of the major A50 road improvement project is good news for businesses in this area. It allows companies like JCB to plan ahead with confidence, knowing that the road network will not constrain business growth and future investment.”