Armacell Bahrain foam factory to open next year
Thermal insulation supplier says new plant will eventually replace existing facility in Dammam, Saudi Arabia
Thermal insulation supplier Armacell had said its new factory in Bahrain will be operational in the first half of next year.
The German-headquartered company confirmed last year that it was building a facility close to Bahrain International Investment Park (BIIP), which would create more than 100 jobs and produce elastomeric rubber insulation for the heating, ventilating, and air conditioning (HVAC) market in the GCC.
Armacell's head of business in the Middle East and Africa, Vilas Bakshi, told MEP Middle East that the factory is currently in the design phase with Tebodin and a main contractor would be appointed this year.
He said the capacity boost provided by the Bahrain plant was needed to meet existing customer demand.
“Last year we had surge in orders and since we have only one manufacturing line in the region, we ran out of capacity. This forced us to look for sourcing from our other plants. And since the lead time was longer and costs of transportation/duties were also more, we faced some challenges in meeting the customer demands,” he said. “We are hopeful to stabilise this in this current year.”
He added: “There’s a lot of scope for construction activities to continue once oil prices stabilise and improve and we’ll be in a better position to meet this additional demand with our new plant.”
The plant will have a similar annual capacity to Armacell's existing factory in Saudi Arabia's Damman district of 45,000 cublic metres.
Both facilities will run in tandem initially before full production is eventually switched to Bahrain, doubling total capacity at that plant.