Armacell, a global leader in flexible foam for the equipment insulation market and a leading provider of engineered foams, has broken ground on its greenfield manufacturing plant in Bahrain.

Establishing a manufacturing facility in Bahrain is part of Armacell’s goal to grow the group’s manufacturing footprint in the Gulf region, said senior company officials at the ground-breaking ceremony held at the Bahrain International Investment Park (BIIP) in the presence of Bahraini government representatives .

Starting production in 2018, the group, through Armacell Middle East Company, will manufacture a comprehensive range of products at the BIIP, including high-density materials and elastomeric insulation for heating, ventilation and air-conditioning (HVAC) systems.

Speaking at the launch, Zayed R Al Zayani, Minister for Industry, Commerce and Tourism, said: "Bahrain’s government has built a robust manufacturing and logistics sector with world-class infrastructure and supportive reforms and policies in place."

"We are seeing more companies taking advantage of this business-friendly environment and Armacell’s investment is a reflection of Bahrain’s strengths as regional hub for manufacturing and logistics. We look forward to supporting Armacell here in Bahrain and in the wider GCC," he noted.

Khalid Al Rumaihi, the chief executive of the Bahrain Economic Development Board (EDB) said: "Armacell is the latest in a long line of international manufacturing companies to base their regional operations in Bahrain."

"The kingdom remains the destination of choice for manufacturers who want to take advantage of the competitive benefits that our operating environment offers such as the availability of a highly skilled local workforce, low costs and our strategic location at the heart of the GCC," he noted.

Patrick Mathieu, the president and CEO of Armacell International, said: "The greenfield construction of our own production site in Bahrain reinforces our commitment to the Gulf region, strengthening our presence in this high-growth market where we have been operating since 2008."

"We are excited to begin our operations early next year, benefiting from Bahrain’s modern business environment, central location and world-class infrastructure," stated Mathieu.

Guillerme Huguen, the vice-president for Europe, Middle East and Africa (MEA), said: "The construction of our own production site in Bahrain is the logical next step to serve the continuously growing domestic demand in the Gulf region."

"The EDB has been supporting us from the start in our endeavour and we are very pleased with the substantial progress we have made since the beginning of this year," he noted.

Located at the BIIP high quality 247-hectare business park, the plant will initially provide 100 jobs. Armacell’s Middle East team has been active in the region for a decade and is led by Neville D’Souza, general manager of Armacell Middle East Company.

A global leader in flexible foam for the equipment insulation market, Armacell boasts 3,000 employees and 25 production plants in 16 countries. The company had last year generated net sales of €560 million ($622 million).-TradeArabia News Service