Changing where a company has its headquarters is no easy matter, yet Kubota Tractor and Credit Corporations have announced just that. Within the next 18 months the two subsidiaries of Kubota Corporation will leave Torrance, Calif., where the company has been since it set up shop in the United States, and head for Grapevine, Texas.
In a press statement, Masato Yoshikawa, president and CEO of KTC, says: "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."
He acknowledges this is the most significant change taken on by the company since it started marketing product in the United States. He adds that "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 shift to Texas puts company leadership closer to Kubota's major markets and its manufacturing , assembly and distribution facilities in Georgia and Kansas. According to the company statement, by centrally locating more of its operations, the company will be able to responde more quickly to changes in markets and the industry, and streamline its operations.
The new facility will be environmentally friendly and large enough to accommodate 400 employees with room to expand. The move will be conducted in stages to avoid disruptions. Kubota's finance business, Kubota Credit Corporation, will move from Torrance and Ft. Worth, Texas to the new facility.
Altogether the move will impact about 180 Torrance-based employees, and some corporate employees who work remotely. Construction on the Texas facility will begin this year and is scheduled to be complete by first quarter of 2017.