British-headquartered heavy equipment manufacturer JCB, has announced it will double the size of a new factory currently under construction in Texas as it confirms the “newly-announced tariffs will impact” its business.

JCB, which this year is celebrating its 80th anniversary, has been manufacturing in the US for 50 years and last year broke ground on a new a USD500 million, 720,000 sqft. (67,000 sqm) factory in San Antonio.

The factory size has now been revised up to 1 million sqft. (92,900 sqm) with JCB adding production is set to start in 2026. It is expected to employ 1,500 people and will make aerial access equipment, including Loadall telescopic handlers.

The new plant will be JCB’s second largest behind its UK headquarters and is located near JCB’s existing US manufacturing plant in Savannah, Georgia which has operated for 25 years and employs around 1,000 people.

“JCB has been in business for 80 years this year and we are well accustomed to change,

Company chairman Anthony Bamford explains. “The United States is the largest market for construction equipment in the world and President Trump has galvanised us into evaluating how we can make even more products in the USA, which has been an important market for JCB since we sold our first machine there in 1964.”

JCB CEO Graeme Macdonald adds: “In the short term, the imposition of tariffs will have a significant impact on our business”.

“However, in the medium term, our planned factory in San Antonio will help to mitigate the impact,” Macdonald continues. “We are thankful that the tariff is only 10% and we can only hope that the UK Government will conclude negotiations on a trade deal in the coming days and weeks.”