Digger giant JCB secures £10m British Army supply order

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Saturday, November 20, 2010
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This is Staffordshire

DIGGER makers JCB has landed its biggest order from the British Army in more than 25 years.

British troops around the world will be using JCB equipment after the Rocester manufacturer won a contract believed to be worth more than £10 million.

Production has started on the deal for 236 diggers, which will be made at JCB's world headquarters in Rocester and its Earthmovers plant in Cheadle.

Alan Blake, chief executive at JCB, said: "We had to fight every competitor in the world for this.

"There were detailed try-outs, ease of use trials, maintenance requirements and fuel efficiency tests and we came out on top.

"This is a great British company providing great products to the British Army for our troops across the world to do the great job they do."

The machines will have minor adaptations for the Army, including Nato green livery, storage space for personal weapons, special lighting and increased ability to cope with operating in deep water.

All 236 are expected to be delivered by the end of January.

Mr Blake added: "JCB has now become the primary supplier of plant and mechanical handling equipment to the British Army.

"As a British company it is fantastic that we have been awarded the opportunity to support our Armed Forces in this way and help ensure they are successful on operations, training and in their many other tasks around the world."

JCB's biggest-ever military order was for $230 million (£144 million) from the U.S. Army in 2005 for up to 800 specialist excavators.

That was followed in 2007 by another British forces order for 420 telescopic handlers which are now in service with troops all over the world, including Afghanistan.

The recession hit JCB hard though, as construction projects in almost every market slowed dramatically and customers were unable to finance new equipment because of the credit crunch.

From a record 70,000 machines in 2007, production halved within months and 1,800 people were laid off as the down-turn continued.

This year, though, the business has taken on almost 200 permanent employees and more than 700 agency staff to respond to fragile signs of recovery.

The firm now employs about 4,000 people in the UK, mainly at its sites in Staffordshire.

And directors are "reasonably optimistic" about the next few years, mainly because of the prospects of growth in emerging markets such as China, Brazil and India.

Mike Maryon, Conservative councillor for Cheadle and Checkley at Staffordshire County Council, welcomed the deal.

He said: "It couldn't have come at a better time.

"Hopefully the commercial market will now recover as we get out of this recession, because if you are not building roads or houses you don't need JCBs.

"It's really important, especially in my ward where so many people work in the factories here.

"It's good to get some good news during what are undoubtedly difficult times."

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