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JCB Closing German Compaction Facility

Posted on March 18, 2014

JCB said it will to close its compaction equipment manufacturing facility in Gatersleben, Germany. JCB acquired the factory when it bought German compaction equipment manufacturer Vibromax in 2005.

JCB said that production of all VM compactors and two larger VM tandem rollers will be relocated to JCB’s factory in Pune, India. Production of walk-behind compactors and two smaller VM tandem rollers will be moved to the JCB Attachments factory in Uttoxeter in the U.K. The moves are scheduled to be completed by the end of June, the company said. Closing Gatersleben will result in the loss of 145 job losses, but will create 90 jobs in the U.K. and India, the company said.

“The decision to relocate production of compaction equipment to factories in the U.K. and India is right for our business,” said JCB CEO Graeme Macdonald. “The decision wasn’t taken lightly and the impact on our employees in Germany is regrettable. This will improve competitiveness of JCB in the compaction sector. It will also create a far more sustainable position on which we can build as we grow business in the future.”