THE chief executive of JCB has announced a huge deal to supply the Army – and said that emerging markets and new products were helping to turn around the company's fortunes.

Alan Blake said that, so far this year, the digger manufacturer had exceeded the number of machines it expected to sell, thanks to orders from countries including India, Brazil and China.

As a result, the Rocester firm, which shed 1,800 British jobs during the economic downturn, has taken on almost 200 full-time staff and 750 contractors this year. It now employs 4,000 people in the UK.

The company was boosted yesterday by the announcement of a deal to supply 236 machines to the Army.

JCB would not disclose the value of the deal but said it was one of the largest the Army had placed with the company in its 65-year history.

The firm said the deal was agreed before the defence spending review.

The order is for 138 backhoe loaders, which will be made in Rocester, and 98 wheel-loading shovels, to be made at JCB Earthmovers, Cheadle.

The order was placed by ALC, a joint venture between Amey Plc and Babcock International Group, on behalf of the Ministry of Defence.

JCB said its machines, which will be used by the Army across the world, were selected after extensive user trials.

Mr Blake said: "JCB has now become the primary supplier of plant and mechanical handling equipment to the British Army.

"As a British company, it is fantastic that we have been awarded the opportunity to support our armed forces in this way and help ensure they are successful on operations, training and in their many other tasks around the world."

Michael Leeming, director of JCB's government and defence department, said: "This order signifies the largest replacement order from ALC for many years and now gives JCB a significant percentage of the plant and logistics handling equipment in use with the British Army."

Mr Blake said the order gave the company hope after testing times.

In 2007, JCB sold 70,000 machines – its largest number for a single year.

But when the economic downturn hit, Mr Blake said that the market suddenly dropped. In 2009, the company sold 36,000 machines.

He said: "We suffered like everyone else. What was crucial is that we retained market share during this period.

"Historically, after every recession JCB has managed to grow faster than its competitors. That's because during downturns we continue to invest heavily in research and development.

"That means when the upturn comes we have a new range of products that customers want."

Earlier this year, the firm unveiled 11 new products, including an eco-friendly version of its backhoe loader.

Mr Blake said: "The European and US markets have remained fairly static. But emerging markets are growing and our new products are very popular.

"Although you never know what is around the corner, we are confident."