JCB aims to double size of Latin American operations with $100m investment
17 June 2024
JCB is to invest 500 million reais (just under US$100 million) on modernizing and expanding its Latin American operations.
El cargador frontal 455ZX, es una máquina robusta y potente diseñada para aplicaciones industriales pesadas. (Foto: DercoMaq)
The UK-based construction equipment manufacturer said it wanted to double the size of its operations by 2030.
The majority of the funds, around 360 million reais (US$52.9 million) will be allocated to expanding operations, with 150 million reais (US$27.9 million) earmarked for modernizing the factory in Sorocaba, São Paulo.
Another 50 million reais (US$9.3 million) will be invested in the development of new products and the localisation of some equipment, while another 50 million reais will be channeled through the distributor network.
Adriano Merigli, president of JCB Latin America, said that 2023 was the second-best year for JCB in Brazil, with 3,500 machines sold in the domestic market.
He said the company planned to grow by another 10% this year, while the sector overall is expected to grow by around 5%. He also expected growth in all sectors, with construction currently accounting for 40% of sales, agribusiness 25% and equipment rental companies 20%.
Part of the growth will come from the product portfolio and increasing market share in heavy machinery. Recent product launches include the 455ZX wheel loader, the Loadall 540-70 telehandler, the 220NXT excavator, the 35Z mini-excavator, and the 135 HD and 155HD skid steer loaders.
JCB currently employs 600 people in Latin America but expects add another 300 direct positions, along with another 700 indirect jobs.
“Earlier this year, we completed an investment cycle of 120 million reais that began in 2021. We are now entering a new cycle with a modernization phase that will enhance our capacity and productivity,” said Merigli.
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