JCB has announced plans to invest $245 million (about £150 million) to expand its operations in Staffordshire, U.K., and create an additional 2,500 jobs by 2018, which will in turn add another 7,500 jobs in the U.K. supply chain. A recent Oxford Economics study concluded that for every JCB job, three others are created in the U.K. supply chain.
Chancellor of the Exchequer George Osborne MP marked the announcement by visiting JCB’s backhoe loader factory in Rocester, Staffordshire. His visit came the day after he delivered his Autumn Statement, in which he committed government funding to unlock economic growth in Staffordshire with a major road improvement project.
Chancellor Osborne was hosted by JCB chairman Lord Anthony Bamford, who confirmed the five-year investment plans for Staffordshire as part of a wider global growth strategy to expand sales and increase market share.
Subject to planning consent from relevant Staffordshire authorities, the $245 million plans represent the single largest investment in JCB’s history. Plans include:
- A new purpose-built 350,000-square-foot factory for JCB Cab Systems in Beamhurst to replace the current smaller facility in Rugeley. It will enable JCB to in-source production of cabs currently made by third-party suppliers in Europe;
- Expansion of JCB’s production operations in Rocester with an additional 126,000 square feet of manufacturing space to increase hydraulic cylinder production;
- A new purpose-built 220,000-square-foot factory in Cheadle, Staffordshire, to expand existing JCB Earthmovers and JCB Compact Products operations, allowing JCB Compact Products operations, allowing JCB Utility Products to relocate from a small factory;
- Relocation of JCB Finance and JCB Insurance offices in Rocestor to new purpose-designed office accommodations;
- A new in-house training facility for JCB staff.
“The Chancellor’s announcement of the major A50 road improvement project is good news for businesses in this area,” said Lord Bamford. “It allows companies like JCB to plan ahead with confidence, knowing that the road network will not constrain business growth and future investment.
“Our plan to create 2,500 high-quality manufacturing jobs locally is clear evidence of the important link between infrastructure improvement and job creation. The Chancellor’s decision to invest in the regional infrastructure means JCB can continue to invest locally.”