Bahrain has in recent months taken pioneering steps toward the adoption of Industry 4.0 as an important engine of productivity and innovation, according to Bahrain’s Economic Development Board (EDB).

Industry 4.0 refers to the use of automation and digitised data exchange in manufacturing. It relies on cyber-physical systems, the Internet of Things, cloud computing, and cognitive computing to create a ‘smart factory’ where cyber-based systems monitor physical processes and create a digital replica of them. This allows for decentralised decisions but also for full integration and optimisation as different process can communicate with each other in real time. This approach permits the optimisation of production processes but also the efficient integration of broader value chains. The increased visibility across processes and supply chains can boost awareness and lead to more efficient decision. Machine-generated data can also enhance the analytical capabilities of an organisation and drive better decisions, the report said.

As the Gulf economies transition to a more productivity-driven model of development, Industry 4.0 holds considerable promise as a way to create more efficient companies and processes. In recognition of this, Bahrain has launched a number of interconnected initiatives to drive the adoption of Industry 4.0 in the country, EDB said in a report.

BFG International, a Bahrain-based producer of composites technologies has partnered with the EDB and Tamkeen to launch a first-in-kind Industry 4.0 project at its Mina Salman facility and eventually across the group.

BFG International’s factories will be automated and all its business areas integrated through a software solution supplied by QiO Technologies. This will establish full transparency across the entire value chain and allow for the production process to be optimized. The four-year project will by supported by Tamkeen. As part of the project, BFG will train local to acquire relevant skills and become capable of producing new solutions for the local market.

Bahrain attracted more than $200 million of investment into its manufacturing and logistics sector in the first half of the year. The investments are expected to engender a total of 1,000 jobs over the coming three-year period. The new investments include a major expansion by Mondelez International which is building a biscuit factory in the Kingdom with an initial employment impact of 200 jobs. This builds on Mondelez’ existing presence in the country which has produced its brand products for 47 markets since 2008.