Manama, November 8 (BNA) Copper tube manufacturer Muller Middle East (MME) has exceeded $100 million in global exports from its base in Bahrain and is targeting $1 billion in exports over the next five years.
The company revealed in a statement that about 40% of the Ministry of Municipality and Environment’s exports during the past year were to Saudi Arabia and the United Arab Emirates, followed by Egypt and Jordan.
MME, headquartered in Bahrain, is the only copper tube manufacturing facility in the MENA region. The company exports to more than 10 countries, with the United States, Canada, Egypt, Saudi Arabia and the UAE making up the largest share. Most MME products are used by original air conditioning and refrigeration manufacturers (OEMs).
The Ministry of Municipality and Environment commenced operations in Bahrain in 2018 and started increasing production as of mid-2019 in an effort to increase its market share. Despite the global supply chain disruptions caused by the Covid virus, MME has been able to benefit from the Free Trade Agreement (FTA) between Bahrain and the United States. The company’s exports to the US accounted for more than 4% of total Bahrain and US exports in the first half of 2021, according to the UN Comtrade database.
Commenting on the announcement, Hisham Al Abbar, Director General of the Ministry of Municipality and Environment said: “This achievement marks the first major step in establishing MME as a serious player in the copper tubes market. I am proud of the hard work the team has done over the past couple of years. billion dollars in exports over the next five years,”
Due to free trade agreements and easy access to the $1.4 trillion GCC market, including Saudi Arabia, which is 40 minutes away by road, Bahrain is seen as a preferred destination for international manufacturers and distributors. Manufacturing is one of the most important contributors to Bahrain’s economy, accounting for around 13.8% of GDP as of the second quarter of 2021. Bahrain is seeking to attract more manufacturers to the country as part of its economic diversification.
Ali Al Madhaifa, Executive Director – Investment Origin at Bahrain Economic Development Board, said: “We are pleased that MME has been able to effectively use Bahrain’s regional and international free trade agreements. The company’s commercial achievement is a testament to the Kingdom’s favorable trade regulations and ease of access to regional and international markets.
The pandemic has demonstrated the value of strong supply chains and easy duty-free access to key markets. Bahrain’s position as a leading logistics hub and gateway to the Gulf and beyond has enabled many of the kingdom’s major manufacturers to increase exports during the pandemic. We support the Ministry of Municipality and Environment’s goal of reaching $1 billion in exports over the next five years and hope to assist more international manufacturers with their export strategies in the coming years.”
Demand for copper tubes and other metal and alloy products is growing across the region as construction projects resume in the wake of the pandemic. According to IMARC Group, the global market size for copper tubes and tubes is expected to reach 5.5 million tons by 2026, up from 4.5 million in 2020.
The Gulf region is a major supply chain hub for the global manufacturing sector and Bahrain is one of the major distribution centers in the region. Bahrain is home to several major logistics groups, including DHL, and is a launching point for neighboring markets. The volume of trade exchange between Bahrain and the United States amounted to $941 million in the first half of 2021, up from $783 million in the first half of 2020.
NS