UGN will slash its workforce; Valparaiso plant to be affected

Peter Anthony, president and chief executive officer of the Tinley Park, Ill.,-based company, said he could not confirm the number of individuals losing their jobs companywide or when the layoffs became effective because the company is privately held.

He said the layoffs will occur at all locations and will affect all types of workers from hourly to management.

UGN operates a production plant in Valparaiso and has locations in Chicago Heights, Ill., Farmington Hills, Mich., Jackson, Tenn., and Somerset, Ky.

The company has received $8 million in tax abatements since 2005 from the city of Valparaiso for expansion, new equipment and job creation, according to Matt Murphy, economic development director for the Valparaiso Economic Development Corp.

In early 2008, UGN received $5.4 million in abatements from the city to invest in equipment and add 45 new positions at the Valparaiso plant within the next three to five years, he said.

At the time, the plant employed 190. However, the current economic situation has had its toll.

"We understand their industry is down about 50 percent," Murphy said.

"Their long-term plans have not changed. Unfortunately, due to the economy, they've had to take some reductions in staffing."

Anthony said the company remains committed to Valparaiso and its plant there and is taking cost-cutting measures to ensure it is able to weather the current economic storm.

"The sole issue is volume and the state of the economy," Anthony said.