The investment will allow the firm to produce cylinder heads, engine blocks and bedplates in-house for the first time.
The Derbyshire-based factory has installed new CNC machining centres and associated automated processes at the site. The centres have been tested and will commence production in early 2017.
It is expected they will be able to produce a set of engine components in just five minutes, and will boost capacity to up to 45,000 engine sets per year.
Alan Tolley, director for engines at JCB Group, said: “The multi-million-pound investment in machining in-house gives us direct control over specification, quality and cost of the major components.
“This is a major step forward for JCB Power Systems and an important piece of the jigsaw that keeps us producing class-leading engines at competitive cost.”
JCB Power Systems invests £10 million into engine plant
JCB Power Systems has invested £10 million into its UK engine plant, it has been announced.