U.K.-based company invests US$100 million in new building.
British Prime Minister David Cameron officially has opened JCB’s new $100 million factory in Sorocaba City, Brazil. Staffordshire, U.K.-based JCB says the expansion will strengthen its position in Latin American markets.
|JCB Chairman Sir Anthony Bamford (left) introduces the JCB Dieselmax engine to Prime Minister David Cameron during his visit to JCB.
Cameron, who was on a trade mission in Brazil, was given the tour of the 350,000-square-foot plant by JCB Chairman Sir Anthony Bamford and Carlos Hernandez, JCB Brazil managing director. The Prime Minister was given insight into the processes involved in the production of backhoe loaders, tracked excavators, wheel loaders, Loadall telescopic handlers and compaction equipment that the factory will manufacture.
In a news release, Cameron states, "JCB's expansion in Brazil shows how British companies can capitalize on the opportunities for growth in Latin America. This expansion also creates new opportunities in JCB factories in Derbyshire and Wales (U.K.). This is a great example of Britain’s engineering prowess and reflects that the U.K. is a world leader in innovation and technology.”
Bramford says, “South America represents a huge opportunity for growth for JCB. Our investment in a new factory is critical to building on the success we already enjoy in this important market. There are £20 billion (US$32.4 billion) worth of infrastructure improvements scheduled in Brazil, and JCB’s new factory will enable us to capitalize on those projects, including the 2014 World Cup and 2016 Olympic Games.”
Bramford continues, “JCB’s decision to invest is a big vote of confidence in the Brazilian economy and was driven by the excellent long-term growth opportunities both here and in Latin America. Our investment will also have a positive impact on the U.K. economy because at full capacity, the Brazilian plant will import £100 million (US$162 million) of components annually from the U.K., including engines and transmissions.”
At full capacity, the new JCB plant will be able to produce 10,000 machines per year. The new factory replaces two smaller plants in Sorocaba City, the first of which JCB opened in 2001 to produce backhoe loaders and the second of which was opened in 2010 that manufactured tracked excavators.
JCB has 19 plants on four continents: 11 in the U.K., three in India and others in the United States, China, Germany and Brazil. The company employs more than 7,000 people worldwide.