JCB to relocate compaction equipment unit to India

UK-based construction gear maker JCB will relocate its compaction equipment production unit to India, closing down its Gatersleben site in Germany.

The move is aimed at strengthening the company's foothold in emerging markets.

"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, India," the company said in a statement.

JC Bamford Excavators (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."

He added that this will improve the competitiveness of JCB in the compaction sector and also create a far more sustainable position on which the company can build as it grows the business in the future.

JCB also said that the production of all "walk-behind models" and two smaller VM Tandem Rollers will relocate to the JCB Attachments factory in Uttoxeter, England.

Besides, 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.

The company said the decision has been taken to improve JCB's competitiveness in the compaction sector and follows a strategic review of the business and recent structural changes in global market conditions.

Demand for compaction equipment has been improving in the recent years but the emerging markets now account for the bulk of demand.

JCB India's MD and CEO Vipin Sondhi 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 Ltd, Ballabgarh (Haryana) is a fully owned subsidiary of JCB Ltd, 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 world class manufacturing facilities: one in Ballabgarh and two in Pune. There is a unit upcoming in Jaipur.