RESHORING CASE

JCB

Company details
Code: 
JCB
Company name: 
JCB
Company country: 
United Kingdom
Number of employees: 
10001
Sector: 
C - Manufacturing
Sector detail: 
C28 - Manufacture of machinery and equipment n.e.c.
Reshoring details
Reshoring announcement date: 
13/03/2014
Starting implementation date: 
April, 2014
End of Implementation : 
June, 2014
Reshored to: 
United Kingdom
Location of affected unit(s): 
Uttoxeter, Cheadle
Location code: 
UKG24, UKD3
Reshored business function: 
Production
Partial or Total reshoring: 
Total
Reshoring governance mode: 
In house (in own facilities)
Estimated job gains: 
45
Reasons for reshoring: 
Logistics costs
Proximity to customers
Case narrative: 

JCB first acquired Vibromax in 2005. Now, due to changes in market demand, the company plans to close its plant in Gatersleben near Leipzig. As reported in the European Restructuring Monitor, this closure will result in the loss of approximately 145 jobs at the factory in Germany, while 90 jobs will be created in the UK and India. Production will relocate to Uttoxeter and Cheadle, England; and Pune, India.

Chief executive of JCB, Graeme Macdonald, said: “The decision to relocate production of compaction equipment to factories in the UK and India is right for our business. The decision wasn’t taken lightly and the impact on our employees in Germany is regrettable.

“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".

“This will improve the competitiveness of JCB in the compaction sector. It will also create a far more sustainable position on which we can build as we grow the business in the future.”

Sources: 

The Construction Index, 13/03/2014

Offshoring details
Offshoring date: 
2005
Offshoring location: 
Germany
Reason for offshoring: 
Merger and Acquisition
Host country geographical area: 
Western Europe
Notes: 
The attribution of new jobs (90) has been shared among UK (45) and India (45)