Armacell to Construct New Manufacturing Facility in Bahrain

Armacell is planning to invest USD16 million in the construction of new manufacturing facility in Bahrain.

Bahrain: Armacell International S.A., a Germany based flexible foam manufacturer and a leading provider of high-performance engineered foams, is planning to build a new manufacturing facility at the Bahrain International Investment Park (BIIP), with an investment of USD16 million. The new plant would produce elastomeric rubber insulation for the Heating, Ventilation and Air-Conditioning (HVAC) market in the GCC and Africa region. The new manufacturing facility is expected to generate over 100 jobs in the region within the first 3 years of commencement of its operations. As per Zayed Al Zayani, Bahrain's Minister of Industry, Commerce and Tourism, Armacell’s new initiative will leverage the company’s business model and would help the company to develop among  the business-friendly environment of Bahrain.

TechSci Research depicts that this new manufacturing plant would further help Armacell to strengthen its position as well as enhance its customer base and product offering in GCC region. With production facilities of Armacell spread across Asia-Pacific countries including China, Thailand, India and South Korea, the company’s new venture would enable the company to cater to the growing demand for thermoplastic elastomers in the developing economies of the region, such as India and China.

According to the recently published report by TechSci Research, “India Thermoplastic Elastomers Market By Type, By End Use Application, Competition Forecast & Opportunities, 2011-2025”, the market of thermoplastic elastomers in India is anticipated to grow at a CAGR of around 7% during 2016 – 2025. Styrenic Block Copolymers dominated India thermoplastic elastomers market in 2015, and the segment is expected to continue dominating the market through 2025 owing to its wide range of applications in various industries, ranging from automotive to consumer durables. During the forecast period, automotive industry is expected to emerge as the largest end user of TPEs in India, on account of increasing consumer preference for high performance and lightweight automobiles in the country. A major share in the demand for thermoplastic elastomers emanates from Tamil Nadu, Maharashtra, National Capital Region (NCR), Gujarat, Karnataka and Andhra Pradesh, among others.