JCB opens £60m factory in Brazil to build on strong Olympic demand
STAFFORDSHIRE excavator manufacturer JCB rolled out part of its global expansion plans today with the opening of a new £60m factory in Brazil.
The Rocester-based firm, one of the UK’s foremost exporters, is aiming to capitalise on the strong construction sector in the country ahead of the 2014 World Cup and the 2016 Olympics.
The new 350,000 sq ft plant in Sao Paulo will manufacture excavators and backhoe loaders predominantly for the domestic market.
The development of the factory comes after JCB secured one of the biggest single tenders in its history with an order for more than 1,000 machines worth over £60m.
The firm beat off competition from other major global manufacturers to secure the deal with the Brazilian Government.
The order, announced in May, is for a fleet of backhoe loaders, which will be used to improve the road infrastructure in the country.
The 1,016 backhoe machines have been bought by the Brazilian Federal Government for use in more than 1,000 municipalities across the country with populations over 50,000 people. They will be deployed to improve and open up thousands of miles of secondary roads in communities heavily dependent on farming, ensuring food gets to its final market much quicker.
Carlos Hernandez, Managing Director of JCB Brazil, said: “These JCB machines will play a big role in improving the infrastructure nationwide and ultimately ensure produce from family farms gets to its destination quickly.”
Earlier this year JCB announced record results for 2011 based on strong global demand for its iconic products.
The firm saw turnover rise to the highest level in the company’s 66-year history at £2.75bn, 37% more than the £2bn achieved in 2010 and more than double the £1.35bn sales recorded in 2009.
Earnings before interest, tax, depreciation and amortisation (EBITDA) reached a record £355m and machine sales rose to 69,100 units (2010: 51,600).
Sir Anthony Bamford, JCB chairman, said: “This record financial performance has been delivered on the back of very strong growth in both traditional markets and the emerging economies.”