ESCATEC Expands Production Capabilities, Global Footprint

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Emerging trends in global markets and product requirements have prompted electronics manufacturing services (EMS) provider ESCATEC to acquire 100% of UK-based JJS Manufacturing in a private deal. The acquisition adds electro-mechanical production facilities in the United Kingdom 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.

ESCATEC’s production capacity in Europe thus far has been centered on 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.

“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,” states Patrick Macdonald, CEO of ESCATEC. 

Established in 1974, ESCATEC offers a complete range of electronics and box build manufacturing services – from design & development and certification to mass production and after-sales service – to a global customer base. 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 USD$200 million, the acquisition of JJS Manufacturing together with ongoing expansion of its Malaysian operations is expected to rapidly propel ESCATEC’s annual revenues beyond the USD$300 million mark.

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 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 USD$70 million 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.

“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,” says Macdonald, adding that over the coming months ESCATEC will actively seek to drive additional business to its newly acquired assets.

JJS Manufacturing Managing Director, Stephen Greaves, is equally enthusiastic about the deal. He notes 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. 

“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,” concludes Macdonald.