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JCB to ramp down production over fears coronavirus will impact supply chain

JCB has announced it will ramp down production levels at UK factories due to anticipated component shortages from Chinese suppliers impacted by the coronavirus outbreak.

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JCB to ramp down production over fears coronavirus will impact supply chain

The move will mean a shorter working week for around 4,000 JCB and agency shop floor employees from Monday February 17. This follows an immediate suspension of all overtime.

The measures have been discussed with the GMB union and will see the introduction of a 34-hour week for UK production employees until further notice. JCB employees will be paid for a 39-hour week and will bank the hours, working them back later in the year.

JCB Chief Operating Officer Mark Turner said: “Production in the UK has so far been unaffected by the situation in China. However, more than 25 per cent of JCB’s suppliers in China remain closed and those that have reopened are working at reduced capacity and are struggling to make shipments."

 

"It is therefore clear that the inbound supply of certain components from Chinese partners will be disrupted in the coming weeks as they seek to replenish their stocks. This inevitably means we will not have the required amount of parts needed to build our forecast number of machines in the short term, so while this course of action is very unfortunate, it is absolutely necessary to protect the business and our skill base.”


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