JCB, a manufacturer of diggers has closed one of the year’s largest deals with a contract worth 35 million pounds.
According to the company based in Rochester, it was able to seal a deal on a job order of 1,200 units to be shipped to the company A-plant. The contract is another order placed on top of a previous order made to JCB the previous year worth 50 million pounds for 1,500 machines.
The latest deal with JCB, which has its own engine-making plant called JCB Power Systems, will supply a fleet of heavy equipment including a JS130 weighing 13 tons, track excavators, mini excavators, loadall telescopic handlers, and rough terrain fork lift trucks made in its factory in Staffordshire. Some machineries in the fleet are going to have the JCB Ecomax engine manufactured in Derbyshire.
A-Plant is also taking on new investments, particularly in generators made in the UK in the rental market from JCB Power Products ordering almost 40 sets from manufacturers. The sets bought would be enough to power two hospitals or 1,000 houses. With the new orders, A-Plant would have a total of more than 11,000 pieces of equipment made by JCB after its initial purchase 25 years before.
JCB Sales Director Dan Thompstone said, “JCB has a long-standing relationship with A-Plant and we are delighted to cement that with this huge order. Winning business like this is testament to JCB’s continued introduction of innovative products supported by unrivalled parts and service back-up from the JCB UK dealer network.”
In a comment about its recent purchases, A-Plant Marketing Director Asif Latif said, “This order is part of our investment programme to ensure our customers continue to get the most advanced, reliable, safe and environmentally-friendly equipment. Our investment programme is unrivalled in the industry and coupled with the high levels of customer support we provide, ensures we are firmly positioned to be the obvious choice for rental equipment whether our customers are local builders, events suppliers or national contractors.”
The orders come as a welcome change after the company suffered from low demand in its key markets including Brazil, Russia, and China. The annual turnover of JCB reported in July was down from 2.51 billion pounds two years ago to 2.34 billion pounds in the previous year as total sales in its machinery and equipment unit were at 59,844 compared to 64,028 in the previous year.
A-Plant is the largest equipment rental company in the UK and is owned by FTSE-100 listed company Ashtead Group.