JCB Plans to Relocate Production of Compaction Equipment to India and UK Factories
In an attempt to set up its network as per market requirements, JCB has announced plans to relocate production of compaction equipment to factories in the UK and India and close the Gatersleben site in Germany. The latest decision has been initiated 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. In the emerging scenario, the demand for compaction equipment has been improving in overall terms in recent years but the emerging markets now account for the bulk of demand.
In view of the latest relocation plans, JCB has decided that by the end of June 2014 its production of all VM Compactors and two larger VM Tandem Rollers (VMT380 and VMT430) will be relocated to JCB's factory in Pune, India. Likewise, the 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.
According to the Chief Executive Officer, Graeme Macdonald, the decision to relocate production of compaction equipment to factories in the UK and India is right for its business. Demand for compaction equipment has shifted towards emerging markets and manufacturing smaller models in the UK and larger equipment in India is in the customers' best interests, especially in light of our recent investments in new compaction products. The move will improve the competitiveness of JCB in the compaction sector, besides, creating a far more sustainable position on it can build as per future business requirements.
The Managing Director, and CEO Vipin Sondhi, informed that the demand for larger compaction equipment is growing at a steady rate in the Greater India region and the JCB will now have better flexibility to produce global quality machines in India for ITS customers in the region as well as for exports purposes.