JCB to relocate production of compaction equipment to India, UK and close German plant

JCB has today announced plans to relocate production of compaction equipment to factories in the UK and India and close the Gatersleben site in Germany, according to a company statement. The decision has been taken to improve JCB’s competitiveness in the compaction sector and follows a strategic review of its compaction business and recent structural changes in global market conditions. Demand for compaction equipment has been improving in overall terms in recent years but the emerging markets now account for the bulk of demand.
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As a consequence of this review, JCB has decided that, by the end of June 2014: 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 two 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 had been 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”.
Vipin Sondhi, MD and CEO, JCB India said: “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”.
JCB India Limited, Ballabgarh (Haryana) is a fully owned subsidiary of JC Bamford Excavators Limited, UK, one of the world’s leading manufacturers of earthmoving and construction equipment. Worldwide, JCB produces over 300 different models, which are sold in over 150 countries. JCB India has three operational world class manufacturing facilities; one in Ballabgarh, Haryana near New Delhi, two in Pune and an upcoming unit in Jaipur with twenty four different machines in seven product types such as Backhoe Loaders, Wheeled Loading Shovels, Tracked Excavators, Vibratory Compactors, Telehandlers, Skid Steer Loaders and Pick and Carry cranes. An excellent network of over 575 outlets throughout India along with a world-class customer service network support JCB.

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