Rossville is expected to gain 500 jobs over the next two years with the opening of Rubber Tec Inc.

The startup company, which uses a patented new technology for recycling tires, has contracted to purchase the 250,000-square-foot former Coats factory at 150 Maple St. It is scheduled to open in the fourth quarter of 2002.

“I will certainly welcome this new industry into Rossville, and the sooner the better,” Rossville Mayor Johnny Baker said.

Baker and the City Council met several times with Rubber Tec officials who seemed to lack the sponsorship they sought before proceeding with the purchase, he said, adding now that sponsorship appears to be in place.

Rubber Tec has also retained SIM Associates LLC, a government-business liaison firm based in Edison, N.J., to negotiate a government incentive package.

“SIM is helping Rubber Tec with its plant acquisition and startup,” said Edward L. Carduner, SIM Associates president. “We are meeting with state and local authorities to obtain tax credits and other incentives that will ensure Rubber Tec has maximum operating capital during its critical initial years.”

Rubber Tec’s recycling process breaks down truck and car tires into rubber, nylon and scrap metal. Some of the recovered materials will be converted into roofing tiles and asphalt additives.

When fully operational, the plant, located three miles from the Tennessee line, will recycle 30 tons of tires per day