Kubota to Establish New Distribution Center in California, U.S.A. Aiming to improve its warehousing and shipment capabilities for tractors, construction machinery, and other products to further business expansion
October 6, 2021
Kubota Corporation
Kubota Tractor Corporation (hereinafter “KTC”), a United States sales subsidiary of Kubota Corporation (Head Office: Naniwa-ku, Osaka, Japan; President and Representative Director: Yuichi Kitao; hereinafter “Kubota”) is building a new distribution center in California, United States and will move its KTC West Division to this new site.
The transfer of KTC West Division operations will not only strengthen supply systems for products and service parts but also enhance dealer training facilities as well as take over optional attachments, specification changes, and other tasks currently handled by dealers. These reforms will build a system that allows dealers to focus on sales and improve the quality of aftercare services, which will promote even further business expansion in the United States.
1. Background and Objectives
- Kubota is currently pursuing further business expansion in the United States by entering the market of large agricultural machinery for upland faming, in addition to its present business focus on the small agricultural machinery market which continues to stay strong, and by enhancing its lineup of compact truck loaders, skid steer loaders, and other products in the construction machinery market.
- Kubota supplies products and parts from the KTC West Division warehouse in California to customers on the West Coast through its dealers. As business has expanded, securing the space necessary for product receiving and retrieval processes as well as warehousing has become an issue for efficient operations.
- By building a new distribution center near the current KTC West Division, Kubota heightens its distribution capabilities by securing the space necessary to execute various operations and inventory. Moreover, this new center enlarges the training facility for dealers, in addition to taking over optional attachments, specification changes, and other tasks currently handled by dealers.
- The new distribution facility not only strengthens supply systems of products and service parts but also reinforces dealer support systems to further improve the services provided by dealers to customers, which will promote even further business expansion.
2. New Distribution Center Profile
| Name | Western Distribution Center (WDC) |
|---|---|
| Location | Elk Grove, California, United States |
| Area | Site = 181,000 m2; Building =59,000 m3 |
| Overall investment | Approx. JPY 6.5 billion |
| Start of operations | Scheduled for June 2022 |
3. KTC Profile
| Name | Kubota Tractor Corporation |
|---|---|
| Established | September 28, 1972 |
| Headquarters | Grapevine, Texas, United States |
| President and CEO | Haruyuki Yoshida |
| Capital | USD 37 million |
| Business | US sales of tractors, turf equipment and UVs, construction machinery, implements, and parts |
