A British heavy machinery company has denied allegations by an international rights group that it is complicit in alleged Israeli abuses in the occupied West Bank.

Amnesty International says J.C. Bamford Excavators Limited’s diggers and excavators have been used to demolish Palestinian homes and in the construction of Jewish settlements, both of which are widely seen as violations of international law. JCB is among more than 100 businesses listed in a U.N. database of companies that operate in West Bank settlements.

In a statement issued late Thursday, JCB said it “does not contribute to, or is in any way responsible for, or otherwise linked to adverse human rights abuses in the Occupied Palestinian Territories, either directly or indirectly.”

It said an independent investigation by the U.K. National Contact Point for the OECD Guidelines for Multinational Enterprises had recently absolved the company of any wrongdoing.

That investigation found that JCB had not breached guidelines aimed at preventing or mitigating human rights violations. But it faulted the company for not carrying out human rights due diligence in its supply chain...