JCB relocates compaction equipment production to India and UK factories

JCB announced its plans to relocate compaction equipment production to UK and India factories and close the Gatersleben plant in Germany.

The move is being made to improve JCB’s compaction sector competitiveness following strategic review of its compaction business and recent structural changes in global market conditions.

JCBJCB has decided that by June 2014 end, production of all VM Compactors and two larger VM Tandem Rollers (VMT380 and VMT430) will relocate to JCB’s factory in Pune, India. Production of all walk-behind models and 2 smaller VM Tandem Rollers (VMT160 and VMT260) will relocate to the JCB Attachments factory in Uttoxeter, England. Production of the 403 Wheeled Loading Shovel will be brought back to the JCB Utility Products factory in Cheadle, England, where it was manufactured until 2011.

JCB Chief Executive Officer, Graeme Macdonald said, “The decision to relocate production of compaction equipment to factories in the UK and India is right for our business. Demand for compaction equipment has shifted towards emerging markets and manufacturing smaller models in the UK and larger equipment in India is in our customers’ best interests, especially in light of our recent investments in new compaction products.”

“This will improve the competitiveness of JCB in the compaction sector. It will also create a far more sustainable position on which we can build as we grow the business in the future”.

According to JCB India’s MD and CEO Vipin Sondhi, “The demand for larger compaction equipment is growing at a steady rate in the Greater India region and we will now have better flexibility to produce global quality machines in India for our customers in the region as well as for exports.”