UGN Inc. to Expand Operations; Create 100 New Jobs; Invest $3M+ | Trade and Industry Development

UGN Inc. to Expand Operations; Create 100 New Jobs; Invest $3M+

Jul 19, 2009

Noise Control Equipment Manufacturer to Expand its Valparaiso Operations UGN Inc., a manufacturer of acoustic, interior trim and thermal management products to North American Japanese transplant automotive manufacturers, announced that it will expand its operations here, creating up to 100 new jobs by 2014. 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. "We're excited about the opportunities for future growth that UGN is bringing to Indiana," said Governor Mitch Daniels. "We must continue to work to create the environment that attracts competitive investment and new jobs for our state." 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 associates to support new product since March of this year. Additional positions will be added to support further expansion in the coming months. "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 SUV's, 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. The Indiana Economic Development Corporation 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," said Mayor Jon Costas. "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." Indiana's manufacturing industry received an overall "A" grade, according to Ball State University's 2009 National Manufacturing and Logistics Report Card published by Conexus Indiana. About UGN Headquartered in Tinley Park, Ill., UGN was incorporated in 1986 as a joint venture between Rieter Automotive Systems and Nihon Tokushu Toryo (Nittoku). Rieter's innovative leadership and theoretical acoustics combined with advanced manufacturing processes and quality system design by Nittoku have established UGN as a preferred supplier of acoustic, interior trim and thermal management products to the Japanese transplant automotive industry in North America. About IEDC 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. Indiana Secretary of Commerce Mitch Roob serves as the chief executive officer of the IEDC. For more information about IEDC, visit

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