Textile mudguards producer UGN to expand Valparaiso facility

26 Nov '10

3 min read

Automotive parts manufacturer UGN Inc, announced that it will invest over $3 million to expand its Valparaiso operations and create up to 28 new jobs by 2011.

Construction of a 16,000-square-foot addition of UGN's Valparaiso facility will start in November and be operational in March. The Valparaiso site spans 180,000 square feet and produces carpets, foam dash insulators, wheelhouse insulators, engine-side absorbers and textile mudguards. The expansion will add to the facility's current workforce of 250.

This is UGN's second Indiana expansion in just over one year. Last July the company announced plans to launch a new product line and expand manufacturing space in Valparaiso, adding 100 new jobs and over $3 million in investment.

“UGN's continued growth and investment in Indiana is more positive momentum for our economy and indicative of the strength of our state's business climate,” said Mitch Roob, Secretary of Commerce and chief executive officer of the Indiana Economic Development Corporation.

UGN, based in Tinley Park, Ill., is one of the few industry companies that posted revenue gains during the recession. The company forecasts 35 percent growth in year-end revenue for 2010 over 2009. In the last 12 months, UGN has increased its workforce by 30 percent.

“Part of our strategy is to vertically integrate the business to ensure long-term viability as a world-class manufacturer,” says Peter Anthony, chief executive officer, UGN. “We are excited to be expanding in communities where we already are successful.”

UGN, a joint venture between Japan-based Nihon Tokushu Toryo Co. and Switzerland-based Rieter Automotive Systems employs 1,100 team members across multiple locations in the U.S.

The Indiana Economic Development Corporation offered UGN up to $200,000 in performance-based tax credits based on the company's job creation plans. The city of Valparaiso will consider additional property tax abatement.

“In these tough economic times, it's wonderful to see one of our major industrial companies announce a significant investment in Valparaiso, strengthening their stake in Northwest Indiana,” said Mayor Jon Costas.

UGN's announced decision to expand in Valparaiso comes just weeks after Area Development magazine named Indiana the top state in the Midwest and 6th best in the nation for business, according to a survey of national site selection consultants.

UGN was incorporated in 1986 as a joint venture between Switzerland-based Rieter Automotive Systems and Nihon Tokushu Toryo of Japan.

Created by Governor Mitch Daniels in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Mitch Roob serves as the chief executive officer of the IEDC.

UGN Inc

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