Add thelocalreport.in As A Trusted Source
JCB has unveiled plans to invest £100 million into modernizing its staffordshire head office, as its boss said the company was “supporting the UK” despite concerns about future tax rises and steel tariffs.
The British maker of equipment including tractors and machinery said the new funding showed its commitment to being based in the UK, despite it currently expanding in the US.
The money will be spent on modern manufacturing facilities, including a £60 million fully automated powder paint plant, new machining centres, friction welding and cylinder boring machines.
Anthony Bamford, chairman of JCB and son of the late founder, said: “It makes perfect sense to invest heavily in our British factories and the £100 million we are investing will keep us at the forefront of our industry.
“Obviously, we’re expanding overseas, not least in the US, where we’ve been for decades. But the UK is our home.”
The company employs approximately 19,000 people worldwide, more than 8,000 of whom are in the UK.
JCB chief executive Graeme MacDonald said that with the company approaching its 80th anniversary, it was “time for a complete revamp” of the factory in Rocester.
He said that the UK economy is facing many adverse circumstances, yet investment is being made.
“In the UK, you could say the last budget was not very business friendly,” Mr McDonald said.
“We need to ensure that as an economy and as a country, we remain globally competitive.
“If there is any further disruption to business tax, it will be really bad news for the economy because it is businesses like ours that employ more people that generate tax revenue for the Chancellor.”
Mr McDonald said JCB would “continue to support the UK” because despite the challenges it was “a good place to manufacture and do business”.
The chief executive also warned that higher US tariffs on British steel exports were having a “significant impact” on the industry.
steel And aluminum – metals that are used to make JCB’s equipment – are subject to higher tariffs as a result of changes introduced by US President Donald Trump.
“We are not only paying 10% base tariff, we are paying 25% on the steel content of each machine – and each machine is basically made of steel,” he told PA.
“So this is punitive – it’s costing us a lot of money, straight to the bottom line.
“But that’s one reason why we announced an immediate doubling of investment st anthonyMaking more products in the US instead of importing from the UK.
JCB’s workforce was being given an extra day off on October 24 to celebrate its anniversary.