January 11, 2015
Manama, Economic Development Board,11th January, 2015: Armacell, a world leader in flexible insulation foams for the equipment insulation market and leading provider of engineered foam, announced today 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.
HE 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.