Armacell turns up the heat with new insulation plant

January 25, 2017

A world leader in flexible insulation foams for the equipment insulation market and a leading provider of high-performance engineering foam, Armacell has announced a new USD 16 million production facility at the Bahrain International Investment Park (BIIP), Bahrain’s purpose-built site for manufacturing and industry.

The company, based in Luxembourg, already has 23 plants in 16 countries employing around 2,800 people. In 2015, it generated €540.2 million net sales.
Armacell will produce elastomeric rubber insulation for the heating, ventilation and air conditioning (HVAC) market in the Gulf Cooperation Council (GCC) and Africa. For Bahrain, the new plant will have a noticeable impact and is expected to create more than 100 jobs within three years.
Armacell chose Bahrain for three key reasons:
  • Bahrain is linked by road to the region’s biggest economy, Saudi Arabia, and is uniquely positioned to serve the whole USD 17 billion GCC market
  • Armacell will benefit from the Gulf’s most effective processing of trade goods, and move trucks swiftly via our highly integrated infrastructure
  • Industrial operating costs are 22% lower than Dubai and 18% lower than Saudi Arabia
Armacell will also benefit from burgeoning construction and HVAC markets, who are experiencing a surge in demand. Bahrain’s construction sector has been growing consistently, reaching an average annual growth rate of 5.9% in Q2 of 2016. As for the HVAC markets, the GCC’s rapid population growth, boom in construction, increasing utility prices and extreme temperature changes are driving demand for HVAC products.
The company was helped by the Bahrain Economic Development Board (EDB) throughout registration and set-up. By establishing a site at BIIP, Armacell joins global manufacturers such as Mondelēz, BASF and Siemens.
Neville D’Souza, General Manager, Armacell Middle East Company (AMEC), said: “We are very pleased with the speedy progress we have made in establishing our first manufacturing plant in Bahrain. We are excited to begin our operations and to take advantage of the opportunities within the Gulf market. The EDB has been supporting us from the start in our endeavour.”
Latest Articles
Go to top