The company is in the process of investing more than $3 million to launch new product and expand manufacturing floor space at its 180,000-square-foot facility on the city's southeast side, according to the Indiana Economic Development Corp.

UGN, a joint venture between Japan-based Nihon Tokushu Toryo Co. and Switzerland-based Rieter Automotive Systems, employs 170 associates at the Valparaiso facility. UGN has added more than 40 new manufacturing employees to support new product since March, and anticipates adding more positions in the coming months to support further expansion, according to the state.

“UGN continues to grow and celebrate successes in a very challenging economic environment. Our Valparaiso facility is seeing incredible expansion and is well-positioned with new product and technology to see further growth once the global economy starts to show signs of recovery,” said Randy Khalaf, chief financial officer at UGN. “The leadership and support of both the state of Indiana and the city of Valparaiso have played a major role in facilitating the growth and expansion of our Valparaiso facility. They have and continue to act as true business partners.”

Founded in 1986 to serve the Japanese transplant automotive industry in North America, the company recently won additional interior carpeting business from a major Japanese automaker. UGN will manufacture interior carpeting for luxury cars and SUVs, along with related components for a truck model as part of the new contracts. The new business is prompting the company to construct an additional 10,000 square feet of manufacturing space, according to the Indiana Economic Development Corp.

State, City Offered Incentives

The Indiana Economic Development Corp. offered UGN up to $700,000 in performance-based tax credits and up to $50,000 in training grants based on the company’s job-creation plans. The city of Valparaiso will provide additional property tax abatement.

“UGN is a key employer in the city of Valparaiso. This sizable capital outlay in their Valparaiso location is welcome news in this tough economic environment,” Valparaiso Mayor Jon Costas said. “The creation of new jobs helps to strengthen our manufacturing base and we look forward to further partnerships with this key supplier to the automotive industry.”