Mumtalakat has teamed up with Mueller Industries and Cayan Ventures to build a copper tube manufacturing plant in Bahrain.
Bahrain Mumtalakat Holding Company (profile), the investment arm of the Kingdom of Bahrain, announced the signing of an agreement with Mueller Industries, a leading manufacturer and distributor of flow control and industrial products listed on the NYSE, and Cayan Ventures, a GCC-based industrial projects developer and investor, to build the first copper tube manufacturing facility in Bahrain.
The parties will invest approximately USD 40 million in the facility, which will address the increasing demand for quality copper tubes in the MENA region.
The copper tube mill will be located at the Bahrain International Investment Park and will produce commercial copper tubes to serve regional air conditioning and refrigeration original equipment manufacturers. The business will operate and market its products under the Mueller family of brands.
Under the agreement, Mueller will be the technical and marketing lead in the venture with a 40% ownership of the joint venture. Mumtalakat will be responsible for providing on the ground support, including procuring regulatory approvals for establishing the business, and will hold a 30% stake in the joint venture. Cayan will invest, structure and mobilize the project and will also hold a 30% stake in the joint venture.
Commenting on the signing of the agreement, Mr. Mahmood Hashim Al Kooheji, Chief Executive Officer of Mumtalakat, said, “We are delighted to have signed this strategic agreement with Mueller Industries and Cayan Ventures to develop the first regional copper tube manufacturing facility in the Kingdom of Bahrain.
Significant demand for high quality copper tubes in the region, almost entirely supplied by East Asia, made a compelling case for establishing this facility, which will supply an ever-growing OEM production capacity and the fastest growing ACR market globally.
This investment underscores Mumtalakat’s continued commitment to partner with leading international players to facilitate their expansion into the Kingdom. The facility will create over 200 jobs in Bahrain and will make a positive contribution to the local economy.”
Mueller Industries CEO Greg Christopher said, “As part of our continuous effort to expand and strengthen our core business, we have entered into an agreement to establish a copper tube mill in Bahrain. This mill will produce copper tube for the air conditioning and refrigeration markets and will have the capacity to support the surrounding MENA region. The MENA region is one of the fastest-growing markets for air conditioning and refrigeration. We are pleased to secure this arrangement with established financial partners, ensuring us the expertise and relationships necessary to progress in this new venture.”
Cayan’s Managing Partner Thomas F. Stein added, “Cayan Ventures is pleased to see this project move toward becoming a reality. This is a significant project for the Kingdom of Bahrain given the complement it brings to Bahrain’s industrial base and value it brings to the economy. This is the first copper tubing facility in the region and we expect to capitalize on the strength of the shareholders and the project’s geographic positioning to ensure success.”
About Mumtalakat
Mumtalakat is an independent holding company mandated to grow the wealth of Bahrain through long-term investments based on sound financial, strategic and governance principles. Mumtalakat holds stakes in 38 commercial enterprises, with a portfolio spanning a variety of sectors, including industrial manufacturing, financial services, telecommunications, real estate, logistics, consumer products and education.
About Mueller
Mueller Industries, Inc. is an industrial manufacturer that specializes in copper and copper alloy manufacturing while also producing goods made from aluminum, steel, and plastics. It is headquartered in Memphis, Tennessee and comprises a network of operations in the United States, Canada, Mexico, Great Britain, and China. Its products include tubing, fittings, valves, vessels, and related items for plumbing and HVACR related piping systems, as well as rod, forgings, extrusions, and various components for OEM applications. Products are distributed into sectors such as building construction, appliance, defense, energy, and automotive.
About Cayan
Cayan Ventures is a venture development and investment firm focused on the industrial sector that brings significant experience in originating, developing, structuring and investing in projects in the GCC region. Cayan builds businesses across value chains that represent a sound mix of market demand and competitiveness supported by well-structured projects with strategic partners.
For more information, visit http://www.bmhc.bh/