
Staffordshire-based JCB doubles USA factory size due to tariffs
A Staffordshire-based digger firm is planning to ramp up production in the USA after the American administration brought in new levies on imported goods.Bosses at JCB said they had planned for a situation where tariffs would be imposed, and had made preparations to increase production in the USA.It is an important market for the firm, which is headquartered in Rocester.Chief executive officer Graeme Macdonald said:"The north American market is the largest market in the world. To put it into perspective, it is double the size of [the market in] Europe."
He added: "Politics aside, the Trump administration is full of business people."They are business people who are willing to do deals, so I'd encourage our UK government to go and do a deal with the US administration."As part of the company's long-term strategy in America, JCB is doubling the size of its factory in Texas.Work began last June, and production is due to begin next year.The firm already has a plant in Georgia, USA, where it has been based for 25 years.
Bosses at Staffordshire Chambers of Commerce, however, described the current uncertainty around tariffs as "crippling"."People are just really uncertain what it means, and at what point it comes in," said CEO Rachel Laver.It has left some businesses looking to trade more with other countries.Adam Savage from Barkers Fencing, a high security fencing specialist in Stoke-on-Trent, said: "We'll probably adjust our strategy a little bit.""There'll be opportunities in other territories – Canada, for example."He said he could foresee some American companies preferring British-made products to American goods.However, how best to adapt remains a question asked by many business bosses.
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Telegraph
2 hours ago
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Reuters
2 hours ago
- Reuters
Auto companies 'in full panic' over rare-earths bottleneck
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"China has had a rare-earth card to play whenever they wanted to," said Mark Smith, CEO of mining company NioCorp (NB.O), opens new tab, which is developing a rare-earth project in Nebraska scheduled to start production within three years. Across the industry, automakers have been trying to wean off China for rare-earth magnets, or even develop magnets that do not need those elements. But most efforts are years away from the scale needed. "It's really about identifying ... and finding alternative solutions" outside China, Joseph Palmieri, head of supply chain management at supplier Aptiv , said at a conference in Detroit last week. Automakers including General Motors (GM.N), opens new tab and BMW ( opens new tab and major suppliers such as ZF [RIC:RIC: and BorgWarner (BWA.N), opens new tab are working on motors with low-to-zero rare-earth content, but few have managed to scale production enough to cut costs. The EU has launched initiatives including the Critical Raw Materials Act to boost European rare-earth sources. But it has not moved fast enough, said Noah Barkin, a senior advisor at Rhodium Group, a China-focused U.S. think tank. Even players that have developed marketable products struggle to compete with Chinese producers on price. David Bender, co-head of German metal specialist Heraeus' magnet recycling business, said it is only operating at 1% capacity and will have to close next year if sales do not increase. Minneapolis-based Niron has developed rare-earth free magnets and has raised more than $250 million from investors including GM, Stellantis and auto supplier Magna ( opens new tab. "We've seen a step change in interest from investors and customers" since China's export controls took effect, CEO Jonathan Rowntree said. It is planning a $1 billion plant scheduled to start production in 2029. England-based Warwick Acoustics has developed rare-earth-free speakers expected to appear in a luxury car later this year. CEO Mike Grant said the company has been in talks with another dozen automakers, although the speakers are not expected to be available in mainstream models for about five years. As auto companies scout longer-term solutions, they are left scrambling to avert imminent factory shutdowns. Automakers must figure out which of their suppliers – and smaller ones a few links up the supply chain – need export permits. Mercedes-Benz ( opens new tab, for example, is talking to suppliers about building rare-earth stockpiles. Analysts said the constraints could force automakers to make cars without certain parts and park them until they become available, as GM and others did during the semiconductor crisis. Automakers' reliance on China does not end with rare earth elements. 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