Production to be halted at JCB plants

Posted on 28 Sep 2009 by The Manufacturer

Construction equipment maker JCB will extend its annual autumn shutdown by one week at its factories in Wrexham and Staffs in response to revised order inflows.

The production lines at JCB Transmissions plants in Wrexham will halt temporarily from the beginning of next week (October 5). The company said it will also schedule week long breaks at its Staffordshire facilities in Cheadle, Rocester and Rugely.

Employees at the plants will get paid for the week that they don’t work but will have to pay the money back by working one extra hour a week for 39 weeks afterwards, as per a deal agreed with the GMB Union.

Output is stalled temporarily to ensure that supply flows are aligned with weaker demand in the period up to Christmas.

“While many commentators are reporting some positive signals, we are not seeing any indications of an upturn at the moment,” said a spokesperson for JCB. “However the rate of decline the construction equipment sector has experienced over the past 12 months has slowed significantly. We are hopeful we may have found the bottom but are mindful that the recovery will be a slow process.”