Indian group to set up packaging factory in Bahrain
Manama, December 23, 2013
Indian firm Chemco Group has announced plans to establish a plastics packaging factory in Bahrain at an initial investment of about $10 million, said a report.
To be located at the Bahrain International Investment Park in Salman Industrial City, the factory will manufacture polyethylene terephthalate (PET) preforms, which can be turned into bottles and jars of various sizes and shapes.
The company's investment in the kingdom is expected to reach $10 million by 2015 with planned systematic expansion taking it to $20 million by 2017, reported the Gulf Daily News, our sister publication.
When operational, the facility is expected to create more than 80 jobs for the local market, with a 15-20 per cent year-on-year growth likely to add at least 20 more jobs by 2017.
The announcement follows a meeting between Transportation Minister and EDB acting chief executive Kamal Ahmed and Chemco Group top officials.
Chemco Group will look to supply its products to both local and regional companies the report stated.
"We are happy to welcome Chemco Group to Bahrain and are looking forward to the many products it can bring to the growing local market," Ahmed said.
"Our long-standing ties with India have proven that it is an important economic partner for us, particularly as Indian companies have found Bahrain to be an ideal location for investment, in terms of its business environment, transparent progressive legislations, and of course the cultural and environmental similarities between the two countries," he remarked.
The minister said that through the support of the EDB, the company was able to obtain a licence for operations in Bahrain.
This was in line with the EDB's role of attracting foreign direct investment into Bahrain.
Chemco Group chairman and managing director Ram Saraogi said the company chose to set up shop in Bahrain due to its unique business environment, diverse economy as well as locational advantages making it a gateway to the Gulf market.
"This is an important step for us.
"Through this deal, we are able to develop the group's business and provide our various products to different clients in Bahrain and the region," he added.
Established in 1980, Chemco Group is a leading manufacturer of PET preforms in Asia with a 26 per cent market share inclusive of exports. It makes bottles and jars of various sizes and shapes ranging from 15 ml to 25,000 ml, all manufactured under one roof.
These are used for storing beverages, food and other products. Its customers include Coca Cola, Pepsi, Reckitt Benckiser and others.
The GCC has experienced a period of rapid growth in recent years, where the region's market value for plastic packaging industry currently worth approximately $400 million.
Growth is forecast to continue with plastics consumption set to grow 8 per cent by 2020.-TradeArabia News Service
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