Chemco Group, an Indian PET manufacturer, is to set up a plant at Bahrain International Investment Park (BIIP) in Salman Industrial City with an expected investment of $20m by 2017.
The announcement follows an introductory visit led by the Bahrain Economic Development Board (EDB) who provided support, according to the Bahrain News Agency.
Chemco Group‘s plant will serve both local and regional companies.
HE Kamal bin Ahmed, Minister of Transportation and Acting Chief Executive of the Bahrain EDB, said 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.”
Chemco’s investment in Bahrain is expected to reach $10m with systematic expansion up to 2015 and then rise to $20m by 2017.
Chemco Group chairman Ram Saraogi said Bahrain offers “a unique business environment, a diverse economy as well as a vibrant location that acts as a gateway to the Gulf market”.
“This is a big and important step for us,” he said.
“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.”
Chemco Group, which was established in 1980, claims a 26% share of PET preforms in Asia, inclusive of exports.
The Group specialises in manufacturing bottles and jars ranging from 15ml to 25,000ml all under one roof. Clients include Coca Cola, Pepsi and Reckitt Benckiser.
The GCC’s plastic packaging industry is estimated to value $400m, with growth in plastics consumption forecast to grow 8% by 2020.
Bahrain has a large Indian community and in 2011 trade with India totalled $1.7bn, according to the international Monetary Fund.