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JB to relocate production of compaction equipment to UK and India

JCB has announced plans to relocate production of compaction equipment to factories in the UK and India, and close its site at Gatersleben in Germany.

The move will result in 90 new jobs being created in the UK and India, but 145 jobs will be lost in Germany.

The company says the decision has been taken to improve its competitiveness in the compaction sector in the light of “structural changes” in global market conditions. Global demand for compaction equipment has been improving in recent years, but the emerging markets now account for the bulk of demand.

From June, production of all walk-behind rollers and two VM tandem roller models will relocate to JCB’s attachments factory in Uttoxeter, while two larger VM tandem rollers and all VM compactors will be made in Pune, India.

The changes will also see production of the 403 wheeled loading shovel brought back to the JCB utility products factory in Cheadle, where it was manufactured until 2011.

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.”

He said the move would “create a far more sustainable position on which we can build as we grow the business in the future”.

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