Sauder Woodworking Co. said the deal will create 150 jobs at its factory near Archbold, west of Toledo.
The company said it may add even more jobs as Ikea expands across the U.S.
Sauder has been making products for Ikea since 2007, and the new five-year contract will add to the lines they produce.
Sauder makes hundreds of furniture products that are sold under its own brand and other labels that are sold at major retail stores including Target and Walmart.
A company official told The (Toledo) Blade they expect to get job-creation tax credits from the state along with a grant for job training.