JCB says it has guaranteed the future of hundreds of jobs after signing a deal with a new global logistics partner.
The UK digger maker said it has awarded a multi-million pound five-year contract to make Danish transport giant Maersk Logistics its new lead logistics provider.
The global contract will start early next year and will see Maersk collaborate with Unipart Logistics in keeping JCB’s 10 UK production sites in Staffordshire, Derbyshire and Wrexham supplied with parts from the JCB World Logistics Centre in Newcastle-under-Lyme.
JCB said the number of jobs at the main logistics centre had grown more than fourfold since opening in 2013 and the new contract secured the jobs of the 260 people working there. It also supports an additional 160 people working across JCB’s Staffordshire plants.
JCB recently revealed that sales and profits were up after taking a big hit during lockdown, though management warned of possible problems ahead as the economy tightens.
During 2021 the group saw sales of £4.4 billion compared to £3.1 billion in 2020. By comparison, it had global sales of £4.2 billion in 2019, prior to the pandemic.
Last year JCB, which employs more than 7,500 people in Staffordshire, Derbyshire and Wales, sold almost 96,000 units compared to less than 75,000 the year before.
JCB chief operating officer Mark Turner said: “JCB’s business is going through a period of unprecedented growth around the world and as we grow, keeping production lines supplied with parts and components on a just-in-time basis is imperative.
“The appointment of Maersk Logistics as JCB’s global lead logistics provider, along with Unipart Logistics, will bring about a transformation in our global supply chain operations and support our manufacturing growth plans.”
Gary Jeffreys, managing director of Maersk UK & Ireland, said: “We are privileged that Maersk has been selected to be the global lead logistics partner for JCB.
“Our collective strengths and experience will deliver an agile, efficient, and sustainable global supply chain for JCB.”
Ian Truesdale, Unipart Logistics managing director, said: "Unipart's heritage and expertise across manufacturing and production supply chains, combined with its innovation and proprietary system for continuous improvement, will enable us to drive and deliver sustainability and growth targets across JCB's UK operations."
JCB said Maersk and Unipart will work closely with current lead logistics provider DHL during the handover period between now and next year.
