A FACTORY to produce elastomeric rubber insulation for the GCC’s heating, ventilating and air conditioning market is to be set up in Bahrain.
Armacell, a producer of flexible foams for equipment insulation, will build the plant at the Bahrain International Investment Park, the products from which will help meet demand worth $3 billion in the region. The facility will create more than 100 jobs.
Armacell International Holding managing director Dr Karl Paetz Lauter said the fast-growing Gulf market presents “an excellent opportunity” for manufacturing firms. “We think that not only does Bahrain provide the most efficient access to that growing market, but it also provides the most open and favourable business environment in which to operate,” he added.
Dr Lauter was part of an official German business delegation led by the Deputy Vice-Minister of Economic Affairs, Dr Herbert Jakoby, of the German state of North-Rhine Westphalia that visited Bahrain earlier.
In a statement, the Economic Development Board (EDB) said the investment is a direct result of efforts of its Berlin office in attracting investment into Bahrain.
EDB officials have been showcasing the economic strengths of Bahrain and business opportunities it offers to investors, saying they can benefit from its open market, a competitive tax regime, world-class regulations and one of the most educated workforces in the GCC area.
Transportation and Telecommunications Minister and Economic Development Board acting chief executive Kamal Ahmed noted that 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, competitive taxes and a highly educated workforce,” Ahmed said.
Leading German companies with offices or facilities in Bahrain include DHL, BASF, SMS Meer, RMA and Siemens PG.
The Heritage Foundation’s 2014 Index of Economic Freedom has the kingdom ranked 13th in the world and first in the Middle East and North Africa.
With its regional headquarters for Europe, the Middle East and Africa in North Rhine-Westphalia, Armacell employs more than 2,200 people around the world.