JCB is expanding in China and India, with plans to build its first Chinese factory. A second Indian factory is almost completed.

The company has bought land in Pudong, south of Shanghai, for the first Chinese factory but is yet to decide on the products to be manufactured there.

A second factory is being built in Pune, India, which is 1,000 miles from JCB India's Delhi factory and is positioned strategically close to the port of Mumbai. The GBP16 million plant will produce fabricated and machined components.

The expansion means JCB will have 15 plants worldwide, 10 of which are in the UK.

Company managing director John Patterson unveiled news of the expansion at a press conference at the Conexpo construction equipment trade show in Las Vegas.

"Our business continues to grow from strength to strength and the expansion plans we have announced for China and India will ensure JCB is well positioned to take advantage of future growth opportunities as these markets expand," Patterson said.

JCB enjoyed its most successful sales year ever in 2004. Last year, international sales reached 37,260 machines, an increase of 23 per cent from 2003. Its worldwide market share rose from 8.2 per cent to 8.6 per cent.