JCB has stopped production at all its UK manufacturing plants as disruption resulting from the worldwide Coronavirus pandemic has resulted in a reduction in global demand.
The company stopped manufacture on 20 March and will equally shut down for the the whole of this week at its nine manufacturing plants in Staffordshire, Derbyshire and Wrexham.
Go deeper with GlobalData
Shop floor employees affected by the move will be paid in full during the period. No decision has yet been taken on what happens from the week starting 30 March and beyond.
Office staff will continue to work a 39-hour week, with many working from home, in support of the British government's social distancing policy.
"These measures are unprecedented in the history of JCB but are absolutely necessary to protect the business," said JCB CEO, Graeme Macdonald. "As we continue to deal with the health implications of the COVID-19 pandemic, it has become more challenging to maintain business continuity in this volatile economic climate.
"JCB is a global exporter and worldwide demand for our products has dropped sharply as customers cancel orders and defer deliveries. This is not just a UK issue, it is worldwide and with countries like France, Spain and Italy going into lock-down, those key markets for construction equipment disappear overnight.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData"In light of this fast-changing situation, we need to re-plan our production and, as a result, manufacturing at all UK factories will cease for the rest of this week and all of next week.
"This will allow us to take stock of the situation, re-plan our order book, prioritise products that are definitely required by customers, and ensure parts and components are reassigned to support the production of these products."
The manufacturer added its plant in Pudong, near Shanghai, which had stopped production last month as the impact of the pandemic initially took hold, is now fully operational again after several weeks of disruption.
JCB was approached by British Prime Minister, Boris Johnson asking whether or not the manufacturer could transfer some of its skills to ventilator production.
