Custom injection molder Jatco Inc. is moving its headquarters and California operations about 75 miles to the Modesto area from Union City.
In November, Jatco took possession of a leased 58,000-square-foot facility on 2.8 acres in unincorporated Stanislaus County near the north end of the agricultural growing areas of the San Joaquin Valley.
Previously, Hi-Tec Sports plc produced Magnum-brand boots in the plant.
The industrial and commercial area of Union City is being redeveloped, and Jatco needed to exit the premises by April 19, Jatco President Steven Jones said in a telephone interview.
Jatco would not be able to stay at the Union City location for long, and determined that nearby alternative locations had disadvantages.
"It became more prohibitive in the [San Francisco] Bay Area to continue operations," he said.
"We did not have a lot of time to prepare for relocation and needed to make a quick decision," Jones said. "We started looking into the Central Valley with its employee resources, better costs and better commute times."
The search included exploring other possible sites in Stockton and Turlock in addition to the Modesto area.
"We have had a good run in Union City, but the demographics have changed," Jones said. "It is more difficult to do business where we have been located."
Jones joined Jatco in 1997 and was executive vice president in 2010 when he was named president.