JCB on Thursday announced plans to relocate production of compaction equipment to factories in the Britain and India and close the Gatersleben site in Germany.
In a statement issued in New Delhi, the company said 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.
JCB has decided that, by the end of June 2014 production of all VM compactors and two larger VM tandem rollers will relocate to JCB’s factory in Pune. Production of all walk-behind models and two smaller VM tandem rollers will relocate to the JCB Attachments factory in Uttoxeter, Britain.
JCB CEO Graeme Macdonald said the decision to relocate production of compaction equipment to factories in the UK and India is right for the 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,” he added.
