Thursday 24th Aug 2017 - Logistics & Supply Chain

In-sourcing is key to JCB’s £150m investment

JCB is planning to in-source production of cabs currently made by third party suppliers in Europe, as part of a £150m investment which is expected to create 2,500 jobs at the company and 7,500 in its supply chain.

Central to the plan is a purpose-built 350,000 sq ft factory for JCB Cab Systems in Beamhurst, near Uttoxeter, to replace the current smaller facility in Rugeley. It will also enable JCB to in-source production of cabs currently made by third party suppliers in Europe.

There will also be a purpose-built 220,000 sq ft factory on the Harewood Industrial Estate in Cheadle, Staffordshire to expand JCB Earthmovers and JCB Compact Products operations, allowing JCB Utility Products to relocate to this site from the current smaller factory elsewhere in the town.

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And production operations in Rocester will be expanded with an additional 126,000 sq ft of space to increase hydraulic cylinder production.

The investment was announced to coincide with a visit to the Rocester factory by chancellor George Osborne, who announced an upgrade to the A50 which is the main road serving the factory.

JCB chairman Lord Bamford said the five-year investment plan was part of a wider global growth strategy to expand sales and increase market share.

The projected growth in machine output from Staffordshire factories will be supported by an increase in production of components from factories elsewhere in the UK, including engines from JCB Power Systems in Foston, Derbyshire, and axles and gearboxes from JCB Transmissions in Wrexham, North Wales.

 

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