The site at Dove Valley Park near Church Broughton has been bought so the Staffordshire-based company can begin manufacturing its own diesel engines.

A new company, to be known as JCB Power Systems, has been formed to manufacture the engines.

It plans to move into the plant immediately with the aim of starting engine production by the end of 2004.

Future potential

The number of engines being built will increase in 2005.

JCB's chief executive John Patterson felt the site was well-suited to the company.

He said: "This facility is ideal in all respects for JCB's needs.

"It has excellent links with existing JCB factories in Rocester, Uttoxeter and Cheadle, which was one of the main reasons we chose this site.

"While the factory is bigger than our initial production needs, it does provide us with the capability to expand in the future as we manufacture more and more engines."