Kubota Tractor Corporation (KTC) and Kubota Credit Corporation (KCC) is relocating their headquarters to Grapevine, Tex.

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,” says 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.”

Kubota says the move from Torrance, Calif. to Grapevine, Tex. will put its leadership and professional staff closer to its major markets and its manufacturing, assembly, and distribution facilities in Georgia and Kansas. By centrally locating more of its operations, Kubota says it will be able to respond more quickly to changes in markets and the industry.

The move will be conducted in stages to avoid disruption to Kubota’s daily operations. Kubota’s

“This move does not affect the majority of our employees located at our Divisional Offices,” says Yoshikawa.

Altogether, the move will affect approximately 180 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.