Texas Governor Greg Abbott has successfully moved yet another California Company to Texas. Abbott announced on Thursday that Kubota Tractor and Credit Corporation is relocating its corporate headquarters to Texas. It is expected the move will create at least 344 new Texas jobs and $51 million in capital investment in the Lone Star State. The State has made a grant offer of $3.8 million to Kubota from the Texas Enterprise Fund (TEF).
“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,” said Governor Abbott in a statement obtained by Breitbart Texas. “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.”
Kubota will be moving from Torrance, California to Grapevine, Texas. A team effort that included the City of Grapevine, the Dallas Regional Chamber and the Governor’s Office worked together to convince the tractor manufacturer to move to Texas.
“Our decision to relocate our corporate headquarters to a more central part of the U.S. was a major part of our future business strategy, but which state we would ultimately choose was not,” said Masato Yoshikawa, President & CEO, Kubota Tractor Corporation. “Texas ultimately helped make that decision easier. Their business friendly climate, state incentives and geographical location were important factors in our final decision.”
While the move to Texas is slated for early 2017, construction of the new corporate facility is expected to begin right away. Kubota currently employs about 100 people in a Texas facility located in Fort Worth.
The offer of $3.8 million from the TEF is contingent upon the final execution of a contract between the TEF and Kubota. The company must also meet specified requirements related to jobs and capital investment projections. Receipt of local incentives is also a contingency in the agreement.
Kubota is the U.S. based marketing and distribution corporation of Kubota-engineered and manufactured machinery and equipment. This includes a complete lineup of tractors that range up to 179 Gross hp. It also includes performance-matched implements, compact and utility-class construction equipment, consumer lawn and garden equipment, hay tools and spreaders, commercial turf products, and utility vehicles. The company is the U.S. subsidiary of Kubota Corporation which is headquartered in Osaka Japan.
“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,” said Grapevine Mayor William D. Tate. “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.”
“The Dallas Regional Chamber is excited to welcome Kubota Tractor Corporation to our region. Governor Abbott, Lieutenant Governor Patrick, Speaker 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,” added Dallas Regional Chamber President & CEO Dale Petroskey.
The TEF was created by the Texas Legislature in 2003. Funding for the TEF has been reauthorized by the five subsequent legislatures. Its mission is to help attract new companies to Texas and to expand existing Texas companies with the goal of creating more Texas jobs and economic growth across the state. The TEF projects must be approved by the Governor, Lt. Governor and the Speaker of the House.