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Armacell’s plant will be located at the Bahrain International Investment Park in Bahrain

Armacell’s plant will be located at the Bahrain International Investment Park in Bahrain



Armacell to build $16m plant in Bahrain

01 November 2016

Armacell, a global leader in flexible foam for the equipment insulation market and a leading provider of high-performance engineered foams, has announced that it is moving forward with plans to build a new manufacturing facility in Bahrain.

The plant, located at the Bahrain International Investment Park (BIIP), will entail an investment of $16 million. It is expected to create more than 100 jobs within the first three years of operation.

Armacell will produce elastomeric rubber insulation for the heating, ventilation and air-conditioning (HVAC) market in the GCC and Africa at the unit.  

Resilient economic growth and strong demand within the construction sector has driven demand for HVAC products in the region. Bahrain has seen strong growth among businesses looking to service this demand within the Middle East region, possessing the Gulf’s most efficient processing of trade goods with the shortest travel time between seaport, airport and logistics processing zones, said a statement.

Bahrain is also connected to the GCC’s biggest economy, Saudi Arabia, via a 25 km causeway.

The Bahrain Economic Development Board (EDB) assisted Armacell throughout its set-up and registration process in Bahrain, it said.

Bahrain's Minister of Industry, Commerce and Tourism Zayed Al Zayani said: “The Bahraini government has created world-class infrastructure greatly benefiting companies such as Armacell, and businesses are increasingly realising the logistical and economic benefits of locating here. Choosing Bahrain as a location for Armacell’s manufacturing facility is a reflection of investor confidence and testament to our business-friendly environment. This is a very exciting project, and we look forward to working closely with Aramcell, as they develop their business model.”

Khalid Al Rumaihi, chief executive of the EDB, said: “We are proud to see Armacell´s progress in establishing its new manufacturing facility in Bahrain. Specialist manufacturers like Armacell have an important role to play in enabling the growth and diversification of the region’s economy, as well as directly creating jobs. We are delighted to welcome them here and look forward to their continued development and success.”

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.”

Armacell is a world leader in flexible insulation foams for the equipment insulation market and also a leading provider of high-performance engineered foams. In 2015, the company, with approximately 2,800 employees and 23 production plants in 16 countries, generated net sales of €540.2 million.

Armacell operates within two main businesses: advanced insulation and high-performance engineered foams. The advanced insulation unit develops flexible foams for the insulation of technical equipment utilised for the transport energy, heating and plumbing (H&P) in residential and commercial construction, as well as process lines in industries.

High-performance engineered foams developed by Armacell are used in a broad range of end markets including transportation, automotive, wind energy, sports and construction. Armacell’s products significantly contribute to global energy efficiency, the statement said.

Bahrain’s manufacturing sector contributes considerably to the kingdom’s economy, accounting for over 14.6 per cent of real GDP (gross domestic product, having grown by 20 per cent over the past five years.

It is the second largest contributor to Bahrain’s economy in the non-oil sector.

The EDB’s international offices work closely with and assist investors to help, and support with business set up in Bahrain. 




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