Kubota Tractor Corp. relocating U.S. headquarters to Grapevine from CaliforniaMay 14, 2015
In another corporate exodus from Torrance, California, to North Texas, Kubota Tractor Corp. and Kubota Credit Corp. announced Thursday that they will move their headquarters to Grapevine from the Los Angeles-area city.
The relocation is projected to create at least 344 new jobs and $51 million in capital investment in Texas. The state of Texas extended Texas Enterprise Fund grant offer of $3.8 million to Kubota. The move is expected to occur in the next 18 months and will affect about 180 Kubota employees. Employees at a Fort Worth office and in Georgia also will move to the Grapevine headquarters, the company said.
The tractor maker will join Toyota Motor Corp, which is moving its North American headquarters to Plano, and Farmer Brothers coffee, which is relocating its North American headquarters to the Denton County town of Northlake.
Kubota said that construction on the Grapevine facility will begin this year with scheduled completion by the first quarter of 2017. Both Kubota companies are subsidiaries of Osaka, Japan-based Kubota Corp.
"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," Kubota Tractor Corp. President and CEO Masato Yoshikawa said in a news release. "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."
Texas Gov. Greg Abbott issued a statement welcoming the tractor maker:"I'm proud to extend a warm Texas welcome to Kubota and I know their investment in Texas will allow their company to grow, prosper and create even more jobs in the coming years," Abbott said. "Thanks to our low-tax, low-regulation environment that allows all businesses to thrive, we are able to bring job creators like Kubota to Texas. As the top state in the nation for agriculture, Kubota is sure to find fertile ground for its products and distribution network."
The city of Grapevine and the Dallas Regional Chamber worked with the governor's office to facilitate state and local support for the relocation, according to Abbott's release.
"The City of Grapevine is proud to partner with the State of Texas and Kubota Tractor Corporation by welcoming Kubota's new corporate headquarters to Grapevine," Grapevine Mayor William D. Tate said in the release. "Kubota's history and products complement the heritage of our community, and this partnership marks an important milestone in the continued development of the City of Grapevine."
Dallas Regional Chamber President and CEO Dale Petrosky praised the assistance of state officials in making the relocation happen.
"The Dallas Regional Chamber is excited to welcome Kubota Tractor Corp. to our region. Gov. Abbott, Lt. Gov. Patrick, Speaker (Joe) Straus and their teams demonstrated real leadership throughout this process, and proved they are absolutely committed to Texas remaining the number one state in the nation to do business and to continuing to attract top-notch companies," Petroskey said.
A central location in the U.S. appeared to be the big selling point for a relocation. "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," Yoshikawa said.
The company said that the move will put Kubota's executives closer to their major markets and its manufacturing operations.
The company said the new headquarters in Grapevine will be environmentally friendly, state-of-the art, and will be large enough to initially house roughly 400 employees. It will have room for expansion, Kubota said in a release.
Kubota said the move will take place in stages so that Kubota's daily operations won't be interrupted.
The company said it has offered all affected employees in Torrance the option to relocate to Grapevine and said it will offer relocation assistance to those affected employees in California and Georgia who elect to move to Texas.
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