Armacell, a world leader in flexible insulation foams for the equipment insulation market and leading provider of engineered foam, on Sunday announced that it will build a new manufacturing facility in Bahrain
The new plant, which will be located at the Bahrain International Investment Park (BIIP), will produce elastomeric rubber insulation for the US$3 billion heating, ventilating, and air conditioning (HVAC) market in the GCC
The announcement came during an official German business delegation visit to Bahrain, led by Dr. Herbert Jakoby - Deputy Vice-Minister of Economic Affairs, Ministry of Economics and Trade, North-Rhine Westphalia, and included Dr. Karl Paetz Lauter, Managing Director of Armacell International Holding GmbH. This agreement came as direct result of the Economic Development Board’s (EDB) Germany office in Berlin and its efforts in attracting German investment into Bahrain. The new "Armacell" manufacturing facility in Bahrain is expected to create more than 100 jobs.
During a meeting with the EDB, officials showcased the economic strengths of the Kingdom of Bahrain, and the business opportunities it offers to investors who can benefit from its open market, with a competitive tax regime, world-class regulation, and one of the most educated workforces in the GCC.
Kamal bin Ahmed, Minister of Transportation and Telecommunications and Acting Chief Executive of the Bahrain Economic Development Board (EDB) said:
"Armacell joins a number of prominent German and other international businesses that are using Bahrain as a manufacturing hub to access the GCC region, one of the world’s great growth centres. In Bahrain, German businesses will find a sophisticated regulatory environment, excellent transport connections, low costs and competitive taxes, and a highly educated workforce."
Dr. Karl Paetz Lauter, Managing Director of Armacell International Holding GmbH, said: "We are delighted to be establishing our first manufacturing plant in Bahrain. The fast growing Gulf market presents an excellent opportunity for manufacturing firms, and we think that not only does Bahrain provide the most efficient access to that growing market, but also provides the most open and favourable business environments in which to operate."
Armacell, with its regional headquarters for EMEA in the German state of North Rhine-Westphalia, employs more than 2,200 people around the world and exports products to Europe, the Middle East, the Americas, Asia and India. The company joins a number of other Germany businesses that have already established operations in Bahrain as a means of accessing the wider GCC market. Leading German companies with offices or facilities in Bahrain include: DHL, BASF, SMS Meer, RMA and Siemens P.G.
Bahrain’s open economy, favourable business conditions and strong economic fundamentals have been endorsed by the Heritage Foundation’s 2014 Index of Economic Freedom, which saw the Kingdom ranked 13th in the world and first in the Middle East and North Africa