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Skid steer maker ASV Holdings said it will relocate a distribution operation to Minnesota that had previously been outsourced to a third party business in Mississippi.

The new distribution center is being moved to Grand Rapids, Minnesota, next to ASV's existing headquarters and manufacturing plant. Company officials would not disclose project costs, but said they could be "up to" $1 million. The state of Minnesota is assisting with loans and grants worth up to $450,000.

ASV, which makes compact-track and skid-steer loaders, said the new distribution center will be in a leased building and should help ASV more effectively distribute aftermarket parts to its network of dealers.

The relocation of warehouse parts to Grand Rapids should be complete by June 2018 and begin to save the company money next year. In the short term, the company will report $250,000 in relocation expenses on its fourth quarter 2017 income statement, officials said.