JCB to double size of new US factory as tariffs bite
Lord Bamford with his daughter Alice at the ground-breaking ceremony for the new facility in San Antonio.
JCB has announced plans to double the size of its new factory under construction in Texas, citing the need to expand North American production and cushion the short-term impact of newly imposed tariffs.
The UK-based machinery manufacturer, which has been operating in the US for 50 years, originally planned a 500,000 square foot facility in San Antonio. That plan has now been revised to a one million square foot plant, with a total investment of $500 million. The factory is expected to begin production next year and will employ up to 1,500 people.
The expansion comes as the company braces for the effects of a 10% tariff on its products, which JCB says will have a significant short-term impact on its business.
JCB currently operates a manufacturing plant in Savannah, Georgia, which has been running for 25 years and employs around 1,000 staff. The company first entered the US market in 1964.
Chairman Anthony Bamford said the US remains a vital part of JCB’s global strategy.
"JCB has been in business for 80 years this year and we are well accustomed to change. The United States is the largest market for construction equipment in the world, and president Trump has galvanised us into evaluating how we can make even more products in the USA, which has been an important market for JCB since we sold our first machine there in 1964," he explained.
JCB chief executive Graeme Macdonald added that JCB is hopeful the UK government will reach a trade agreement that could help alleviate further disruption.
"In the short term, the imposition of tariffs will have a significant impact on our business. However, in the medium term, our planned factory in San Antonio will help to mitigate the impact. We are thankful that the tariff is only 10% and we can only hope that the UK government will conclude negotiations on a trade deal in the coming days and weeks.”
