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JCB is the first major UK manufacturer to announce they are cutting production, due to problems getting components from china.
There will be reduced working hours for the 4,000 staff from Monday and an immediate suspension of overtime.
More than 25% of JCB's suppliers in China are closed, while others are working at reduced capacity.
"The disruption to the component supply chain in the UK comes at a time when demand for JCB products is very strong, so while this course of action is very unfortunate, it is absolutely necessary to protect the business and our skill base," JCB chief operating officer Mark Turner said.
"We are keeping the situation under review and we anticipate a surge in production levels once this period of supply disruption has passed."
JCB cuts production because of coronavirus
The heavy machinery manufacturer says the virus will cause a shortage of parts from China.
www.bbc.co.uk