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3 minute read

ESCATEC acquires JJS Manufacturing to expand production capabilities and global footprint

Emerging trends in global markets and product requirements have prompted electronics manufacturing services provider ESCATEC to acquire 100% of UK-based JJS Manufacturing in a private deal. The acquisition now adds electro-mechanical production facilities in the UK and Czech Republic to ESCATEC’s portfolio of hi-tech and highly competitive manufacturing locations.

The deal will enable Swiss-owned ESCATEC, headquartered in the global electronics cluster of Bayan Lepas on Penang Island, Malaysia, to cater to OEM brands requiring products to be manufactured or assembled in the UK or Central Europe, whilst also enhancing the group’s capabilities and expertise, especially for electro-mechanical manufacturing.

Prior to the acquisition, JJS has seen significant growth with its ‘road to £100m’ plan and has almost doubled turnover in the past five years. ESCATEC is on a similar growth curve and collectively its new goal is to reach $1bn in the next ten years.

ESCATEC has acquired JJS Manufacturing as it looks to expand its production capabilities and global footprint / Picture: JJS Manufacturing

 

ESCATEC’s production capacity in Europe has so far been centered at a design & development and advanced production facility in Heerbrugg, Switzerland. The addition of JJS Manufacturing, with modern factories and a highly competent workforce, will dramatically and immediately expand the scope of ESCATEC’s offerings.

Patrick Macdonald, chief executive officer of ESCATEC,  said: “This acquisition is a direct outcome of our strategic plan to grow ESCATEC into a major player in the global EMS industry and further demonstrates our commitment to serve our customers’ needs. I am delighted to welcome everyone at JJS Manufacturing to the ESCATEC family at this very exciting time.”

Established in 1974, ESCATEC offers a complete range of electronics and box build manufacturing services to a global customer base – from design & development and certification to mass production and after-sales service. The group operates two production facilities on Penang Island (near the Malaysia-Thailand border) with two further facilities in Johor Bahru, Malaysia (minutes from the Malaysia-Singapore border), while ESCATEC Switzerland AG in Heerbrugg is situated very close to the Austrian border. Production space in these facilities amount to more than 40,000 sqm.

With group revenue exceeding $200m, the acquisition of JJS Manufacturing, together with ongoing expansion of its Malaysian operations, is expected to rapidly propel ESCATEC’s annual revenues beyond the $300m mark.

Patrick Macdonald, chief executive officer of Swiss-owned EMS provider ESCATEC / Picture: ESCATEC

 

ESCATEC’s customer base includes numerous major OEM brands, many of them from the UK and Europe, and Macdonald says that business development initiatives will remain focused on its traditional key markets of the UK, Europe, and North America.

The acquisition of JJS Manufacturing will add 14,000 sqm of production space with a headcount of 500 skilled employees in the UK and Czech Republic.

Established in 1983, with reported revenues of circa $70m in 2020, JJS Manufacturing has an exceptionally strong industry reputation in supplying complex, highly configurable, low-to-medium volume, electro-mechanical assemblies. These assemblies demand high levels of skill, precision, accuracy and consistency, attributes which JJS Manufacturing has ample demonstrable experience. Key market segments include industrial automation, process control, test & measurement, and the scientific fields.

Macdonald concluded: “It’s an excellent fit between ESCATEC and JJS Manufacturing, and there’s a lot of synergy in the abilities and experience of both companies facilitating tremendous opportunities for cross-selling. This is a win-win for everybody, certainly that is the case for OEM brands in the UK and Europe that need a highly experienced and exceptionally trustworthy manufacturing partner with ample production capacity closer to home.”

Stephen Greaves, managing director of JJS Manufacturing, added that ESCATEC brings very strong financial backing for JJS Manufacturing and long-term stability for its employees, besides providing access to its established expertise in high complexity electronics PCBA and box-build manufacturing and to its international business development network.


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