JCB plans to build a new factory in San Antonio, Texas, that will create 1,500 jobs over five years, the company announced today.

The company, which has its North American headquarters near Savannah, Georgia, plans to open a 720,000-square-foot plant on a 400-acre site in San Antonio.

JCB says it will announce later which of its machines will be manufactured in Texas.

A news release from Texas Gov. Greg Abbott’s office said the new plant would manufacture “telescopic handlers and aerial work platforms,” and the project is expected to create more than $265 million in capital investment. As incentives, the state is giving JCB a $5.7 million grant.

Currently, the company has 1,000 employees in Savannah. The 500,000-square-foot Savannah plant opened in 2001. There, it makes skid steer loaders, compact track loaders and Teleskids. It also builds the High Mobility Engineer Excavator and Light Capability Rough Terrain Forklift for the U.S. military and other NATO-aligned forces.

In 2018, the company announced it had ceased production of its 3CX backhoe in Savannah to make room for production of its 505-20TC compact telehandler. The backhoe production moved to England. The company also opened a parts warehouse and distribution center in Miami to free up more manufacturing space at the Savannah plant, which at the time had 600 employees.

JCB says the new factory is part of its construction-equipment expansion plans for North America, where it has seen “extensive growth.”

“North America is integral to the growth and success of JCB’s business in the future, and the time is now right for JCB to expand its manufacturing presence there,” says Graeme Macdonald, JCB CEO. “Texas is a vibrant and growing economy, and the state offers great advantages in terms of a central location, as well as good highway and port access. The city of San Antonio also has a well-established skills base, which makes it a very attractive place to set up a factory.”

JCB is based in Great Britain and has 22 factories around the world. It was formed in 1945 and sold its first product in the U.S., the 4C backhoe, in 1964.

“The growth we’ve experienced in the past few years in North America has been extensive, and demand for our products continues to grow,” says Richard Fox-Marrs, president and CEO for JCB North America. “The decision to expand our manufacturing footprint will bring us even closer to our customers and will allow us to further capitalize on market opportunities in North America.”

For North America, JCB sales equipment for construction, agricultural, landscaping and defense markets. Construction products include excavators, backhoes, skid steers, compact track loaders, telehandlers, wheel loaders, scissor lifts, articulated boom lifts, site dumpers, rough-terrain forklifts, engines and generators.

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