Bahrain's Mumtalakat Holding Company, the investment arm of the kingdom, has signed an agreement with Mueller Industries , a leading manufacturer and distributor of flow control and industrial products, and Cayan Ventures, a GCC-based industrial projects developer and investor, to build the first copper tube manufacturing facility in Bahrain.

The parties will invest approximately $40 million in the facility, which will address the increasing demand for quality copper tubes in the Middle East and North Africa region, a BNA report said.

The copper tube mill will be located at the Bahrain International Investment Park (BIIP) and will produce commercial copper tubes to serve the regional air conditioning and refrigeration (ACR) original equipment manufacturers. The business will operate and market its products under the Mueller family of brands.

Under the agreement, Mueller will be the technical and marketing lead in the venture with a 40 per cent ownership of the joint venture. Mumtalakat will be responsible for providing on the ground support, including procuring regulatory approvals for establishing the business, and will hold a 30 per cent stake. Cayan will invest, structure and mobilise the project and will also hold a 30 per cent stake.

Mahmood Hashim Al Kooheji, chief executive officer of Mumtalakat, said: "We are delighted to have signed this strategic agreement with Mueller Industries and Cayan Ventures to develop the first regional copper tube manufacturing facility in Bahrain.

"Significant demand for high quality copper tubes in the region, almost entirely supplied by East Asia, made a compelling case for establishing this facility, which will supply an ever-growing OEM production capacity and the fastest growing ACR market globally," he said.

"This investment underscores Mumtalakat’s continued commitment to partner with leading international players to facilitate their expansion into the kingdom. The facility will create over 200 jobs in Bahrain and will make a positive contribution to the local economy," Al Kooheji said.

Mueller Industries CEO Greg Christopher said: "As part of our continuous effort to expand and strengthen our core business, we have entered into an agreement to establish a copper tube mill in Bahrain. This mill will produce copper tube for the air conditioning and refrigeration markets and will have the capacity to support the surrounding MENA region. The MENA region is one of the fastest-growing markets for air conditioning and refrigeration."

Cayan’s managing partner Thomas F Stein added: "Cayan Ventures is pleased to see this project move toward becoming a reality. This is a significant project for Bahrain given the complement it brings to Bahrain’s industrial base and value it brings to the economy. This is the first copper tubing facility in the region and we expect to capitalise on the strength of the shareholders and the project’s geographic positioning to ensure success."