MANSFIELD — Jay Plastics in Mansfield will no longer be known as “Jay Plastics” soon.
Under a multi-million dollar agreement with a German company, the Mansfield plastics plant will operate as Nanogate Jay Systems.
But the news is good, said vice president and COO Paul Boggs.
Nanogate AG’s acquisition is expected to bring new jobs to the community and could mean new construction in Mansfield by mid-2017, said Boggs.
“We’ve made the decision to grow and expand into other facilities that may be local,” Boggs said.
He declined to comment on how many jobs the acquisition is expected to add to the company, as well as salary expectations.
He said no existing jobs within the company would be cut as a result of the acquisition.
Jay Plastics also has a site in Alabama. The acquisition could lead to expansion in the south as well, Boggs said.
According to a Jay Plastics announcement, the two manufacturing companies plan to collaborate in industry knowledge and technology exchange for existing customers like Ford, Chrysler, GM and European car companies like BMW, Mercedes-Benz, Porsche, Audi and Volkswagon.
Jay Plastics, which began operating in Mansfield in 1968 as a polymer components manufacturer, employs nearly 450 people in Mansfield. With its parent company, Jay Industries Inc., the employee base reaches over 1,000.
“We want to adapt our business to theirs,” Boggs said. “But we’re going to run as we are today.”
Boggs said the acquisition was made easier when Nanogate shared some of the company’s same values.
“The nice thing is this company (Nanogate) operates much like we do. It was important to them to be involved in the community and for us to remain in Mansfield,” he said.
Jay Plastics’ announcement said Nanogate is a publicly held company and that it is a “provider of plastic components with premium finishes and high-end surfaces.” The 800-employee company expects over $150 million in revenue for 2017.
A Nanogate press release said the acquisition, which envelops 80 percent of Jay Plastics, reached “the mid double-digit million range” and that the transaction should be completed by the beginning of 2017.
Jay Plastics is Nanogate’s first subsidiary acquisition, one that the company’s CEO Ralf Zastrau expects to be successful when joined together.
“(In) regards (to) its technology portfolio and access to customers, Jay Plastics is the American counterpart to our existing activities and is a real gem. Together, we are the first place to turn … for companies to develop and manufacture design-oriented, multifunctional surfaces and components of the highest optical quality,” Zastrau said in a press release.
Jay Plastics CEO Rick Taylor said the acquisition is ideal for future growth for both companies.
“The group is a leader in technology and quality. Our existing site here in Mansfield will benefit from this partnership and we expect to add additional technology jobs in the future,” he said in a company-wide announcement.
