Kubota Tractor Corporation (KTC) and Kubota Credit Corporation (KCC) announced they will relocate their headquarters to Grapevine, Texas. Both companies are U.S. subsidiaries of Kubota Corporation, based in Osaka, Japan, and have been planning for increased efficiencies on the heels of recent expansions and an aggressive growth strategy. The move will affect about 180 employees and is expected to happen within the next 18 months.

“This restructuring and relocation to Texas aligns with our strategic business objectives to strengthen Kubota’s brand in the U.S. marketplace, enter new industry segments, and to position our company for long term, sustainable growth in North America,” stated Masato Yoshikawa, President & CEO of KTC. “This is the most significant change we have undertaken during our long and successful history in the U.S., and there was much thought, deliberation and consideration that went into our decision. California has been good to us, but it makes better business sense for us to be centrally located, and we look forward to achieving added operational efficiencies with this move.”

The move of Kubota’s entire Torrance Corporate Headquarters to Texas will put Kubota’s leadership and professional staff closer to Kubota’s major markets and its manufacturing, assembly, and distribution facilities in Georgia and Kansas. By centrally locating more of its operations, Kubota will be able to respond more quickly to changes in markets and the industry, and streamline its operations for both dealer and customer benefit.

The move will be conducted in stages to avoid disruption to Kubota’s daily operations. Kubota’s finance business, Kubota Credit Corporation, will move from its current locations in Torrance, California, and Ft. Worth, Texas, to the new facility. “This move does not affect the majority of our employees located at our Divisional Offices,” stated Yoshikawa.

The move will affect approximately 180 Torrance, California-based employees, as well as some corporate employees who work remotely from other Kubota facilities. Kubota has offered all affected employees the option to relocate to Grapevine and will offer relocation assistance to those affected employees in California and Georgia who elect to move to Texas. Those electing not to relocate will be offered a severance incentive package to stay on with Kubota during the transition and to assist them with their next employment opportunity.

Construction on the Texas facility will begin this year and is scheduled to be completed by the first quarter of 2017.