The factory was established in 1870 by Ludwig Mehlhorn and Eduard Julius Jäger as a silent partner. The company produced mainly porcelain items imitating Meissen's Zwiebelmunster (Blue Onion) decoration. In 1881 Eduard Julius Jäger left the company and Ludwig Mehlhorn decided to sell it.
The buyer was Friedrich Eduard Mühlenfeld. In 1911 the company was joined by Wilhelm Jäger.
In 1960 the porcelain factories Jäger and Reinecke merged to form the United Porcelain Works in Eisenberg (Vereinigte Kunstporzellanwerke Eisenberg). In 1973 the German Democratic Republic nationalized the company. First it operated as a part of V.E.B. Spezialkombinat Porzellan Eisenberg and later as a part of V.E.B. Vereinigte Porzellanwerke Kahla. Production was finally stopped in 1989.