JCB’s new Brazilian factory
By Sandy Guthrie23 March 2011
JCB is building a new $100 million factory in Brazil to produce excavators and backhoe loaders, while JCB India has invested $30 million in a new engine plant in Ballabgarh, Delhi.
JCB said that it was the BRIC countries (Brazil, Russia, India and China) that were taking the lead in the global recovery at the moment.
The 350,000 ft² (32,000 m²) factory in Brazil is being built in Sorocaba, a few miles from JCB's existing factories. JCB has been producing backhoes in Brazil since 2001 and excavators since 2010.
JCB said it had enjoyed a record year in India in 2010, selling over 21,000 machines. The construction of the new engine factory means it is the first time JCB has produced its Dieselmax engines outside of its UK plant in Derbyshire, UK.
The engines are being used in Indian-built JCB products and from April, every JCB backhoe loader made in India will be powered by a JCB engine to meet new local emissions legislation.
JCB has invested a total of $30 million in the expansion of JCB's global service back-up, with the company about to open its 16th parts warehouse in Prague to serve Central Europe and Poland.
This follows the opening of a parts warehouse in Dubai to serve the Middle East and North-East Africa, and a new facility in Fontana, California, to serve dealers and customers on the west coast.
JCB's revenue in 2010 was $3.2 billion (€ 2.3 billion) up from $2.2 billion (£1.35 billion) in 2009. The company sold 51,600 machines in 2010 compared to 36,000 in 2009.
Speaking at the ConExpo show in Las Vegas, deputy chairman John Patterson said that these figures compared with the company's best-ever figures that were revealed at the last ConExpo three years ago, when 72,000 units had been sold. He added, though, that over the economic crisis of 2008 and 2009, the company "did not lose money".
JCB claimed that in 2010, it had strengthened its position as the World Number One for backhoe loaders and Loadall telescopic handlers.