Earthmoving and construction equipment company JCB on Tuesday said it will invest Rs 650 crore to set up a new manufacturing facility in Vadodara in Gujarat.

The new factory, the company's sixth in the country, would manufacture parts for global production lines in order to cater to increased demand. It is expected to start production next year.

The announcement follows the start of the work on a new 50 million pound (around Rs 450 crore) factory to build cabs for JCB machines in Uttoxeter, Staffordshire, UK which will be completed later this year.

"With major investment in manufacturing capacity in the UK and India, we are very well placed to grow our business in the future," JCB Chairman Lord Bamford said in a statement.

This year the company celebrates 40 years of JCB India and its success over those four decades is due to continual investment, he added.

"It's fitting that we mark the 40th anniversary with an investment in a factory which will give us enormous manufacturing capacity," Bamford said.

JCB India already has five factories in Delhi, Pune and Jaipur.

On completion, the Vadodara plant would be capable of processing 85,000 tonne of steel annually.

"This new factory will be manufacturing engineered components and sub-assemblies for JCB's many factories around the globe. It will add to the capacity at our existing plants in India.

"Vadodara presents us with the advantage of being located close to the Surat port and also to our key suppliers," JCB India MD and CEO Vipin Sondhi said.

India has been JCB's single largest market since 2007. JCB India currently employs over 5,000 people and has a network of more than 60 dealers and 700 outlets spread throughout the country.