Mueller Middle East has begun construction on the first regional copper tube manufacturing facility in Bahrain which is set to open next year.

Mueller Middle East is a joint venture between Bahrain's investment arm Mumtalakat Holding Company and GCC-based industrial projects developer and investor Cayan Ventures along with Mueller Industries, a leading global manufacturer and distributor of flow control and industrial products, 

The new facility, which will come up at the Bahrain International Investment Park (BIIP), will produce commercial copper tubes to serve regional air-conditioning and refrigeration original equipment manufacturers, said a statement from Mueller Industries.

Mueller Industries is the latest international company to sign a lease to establish a production facility in the Bahrain International Investment Park (BIIP).

When it commences production in January 2018, Meuller will be one of over 80 companies serving GCC and international markets from this strategic location.  Bank ABC is the funding partner for the joint venture, said the statement.

As part of the joint venture, Mueller Industries is localising the technology and know-how of the production facility.

Once the project gets completed, it will help address the increasing demand for quality copper tubes in the GCC market, besides creating over 200 jobs, it added.

Welcoming the investment, Zayed R Alzayani, Minister for Industry, Commerce and Tourism, said: "This important investment, supported by Mumtalakat, represents a vote of confidence in Bahrain and BIIP as a highly competitive location from which to service regional and international markets."

Commenting on the new venture, Mahmood H Alkooheji, the chief executive of Mumtalakat, said: "It gives us great pleasure to see our partnership with Mueller Industries and Cayan Industrial Projects materialise. This investment is part of Mumtalakat’s continued efforts to partner with prominent international businesses which seek to expand their presence to the GCC through a platform in Bahrain."

Mumtalakat, he stated, was committed to further developing the kingdom’s non-oil sectors.

"Such investments are key to the continued development of our economy as the resulting technology, knowledge transfer and job creation will enhance productivity. Further, the copper tube mill will boost exports from the industrial sector, which currently accounts for 20 per cent of Bahrain’s GDP (gross domestic product)," he said while speaking at the signing ceremony held recently.

Mueller Middle East CEO Ed Manning said: "We are excited about this new industrial business in Bahrain, a great example of collaboration between international and local shareholders. We very much look forward to making a long term contribution to the local economy."

Jonathan Robinson, the group head of Wholesale Banking at Bank ABC, said: "We are delighted with the successful closing of this landmark transaction, the first of its kind in the Gulf region, and with the opportunity to support the investment of our close relationships with Mueller Middle East, Bahrain Mumtalakat Holding Company, and Cayan."

Bank ABC pointed out that it remains committed to supporting trade and investment flows across its global network, with a strong product suite targeted towards key clients.

"This facility will represent a significant contributor towards the Bahrain economy and we look forward to celebrating the commencement of production in early 2018," he noted.

Legal advisors for Mueller Middle East were Meysan Partners AT and Legal advisors for Bank ABC were Baker & McKenzie (Bahrain).-TradeArabia News Service