Manama, 5th September 2016: CIMC Vehicle Group, the core member enterprise of China International Marine Containers Group Ltd. (CIMC) – a world leading supplier of logistics and energy equipment, announced today that it will invest and launch its first manufacturing facility in Bahrain with 20 new job opportunities as phase one.
The new facility will serve as a major reefer trailer manufacturing and export hub in the Middle East. Reefer trailers, are vehicles which are used in the transportation industry, to transport temperature sensitive goods. CIMC is dedicated to supplying high-quality and reliable equipment and services, including containers, vehicles, energy, chemical and food equipment, offshore equipment, logistics service, and airport facilities. As a diversified multinational operation group worth almost 8 billion USD, CIMC has over 300 member enterprises, 60,000 staff, and an extensive sales network that covers more than 100 countries and regions. The multinational company was supported by the Bahrain Economic Development Board (EDB), which attracts international companies to the Kingdom, and fully supports their establishment. The EDB identified and targeted CIMC’s business activity portfolio as a requirement for the region as part of its efforts during the China Road Show, undertaken by the EDB in 2014. The EDB assisted CIMC in investigating Bahrain’s investment climate where they fully supported CIMC throughout their registration and setting-up process, as well as their other business requirements in order to ensure the company’s successful inception. Besides being the biggest container-manufacturing company globally since 1996, CIMC started the trailer business in 2002, and now is also the world’s biggest trailer manufacturer.
Khalid Al Rumaihi, Chief Executive of the Bahrain Economic Development Board (EDB), said:
“We are delighted to welcome CIMC to Bahrain and believe their investment is a reflection of Bahrain’s excellent regional transport connections, mature regulatory system, and the strength of its highly-skilled local workforce. As part of the EDB’s ongoing logistics initiative, Bahrain offers global manufacturing companies like CIMC a number of competitive advantages that will serve to benefit their operations in the region. The Kingdom has the shortest travel time between seaport, airport, and logistics processing zones, and is connected to the GCC’s biggest economy. Besides being the freest economy in the Middle East, we are ranked 29th globally by the World Economic Forum for the quality of our transport infrastructure. The EDB is proud to have played a part in securing CIMC’s investment and in creating more quality job opportunities for Bahrainis. We look forward to CIMC expanding their business operations even further in the Kingdom.”
Ms. Teresa Tan, CFO of CIMC Vehicle Group, commented:
“Bahrain was an easy choice for CIMC to launch its new manufacturing facility. The Kingdom has excellent infrastructure, cost competitiveness, a strong connectivity to Saudi Arabia as well as the GCC and the Middle East region. These are essentials for our operations. We believe Bahrain’s highly skilled workforce and open business environment provide us the perfect platform for our next growth phase.”
As part of the Shenzhen – Bahrain Business forum, held this morning, the EDB signed two MOUs with "Galaxy Institute for Innovation and Entrepreneurship", and "Huawei Technologies Bahrain S.P.C.".
The MOU signed with "Galaxy Institute for Innovation and Entrepreneurship" aims to promote cooperation between the EDB and the institute through exploring opportunities around establishing incubators in Bahrain, joint business forums and promotional activities. It will also include establishing a Galaxy Institute for financial funds in partnership with Bahraini companies to support investments and entrepreneurship in Bahrain and China. Under the MOU, the EDB and the institute will also exchange ideas on innovation, as well as the legislation and planning around entrepreneurship-related laws and regulations.
The MOU signed with "Huawei Technologies Bahrain S.P.C.", looks at opportunities to enhance and expand the ICT sector in the Kingdom leading to greater economic growth and cooperation. Additionally, the MOU provides a framework from which the parties can explore and implement a strategic plan to develop the human capital in Bahrain and the possibility of cooperating with official authorities in technological solutions presented by Huawei.
The Shenzhen – Bahrain Business Forum was held as part of an official high-level Chinese business delegation visit, led by His Excellency Xu Qin, Mayor of Shenzhen to Bahrain between the 4th and 5th of September 2016. The event was a platform for further investment cooperation between Bahrain and China, explores the various opportunities between the two countries, and discusses possibilities of establishing companies in Bahrain and China.
Bahrain’s manufacturing sector contributes considerably to the Kingdom’s economy, accounting for over 14.6% of real GDP, having grown by 20% over the past 5 years; it is the second largest contributor to Bahrain’s economy in the non-oil sector. The Kingdom is the most efficient processor of trading goods with the shortest travel time between seaport, airport and logistics processing zones in the GCC. Manufacturers based in Bahrain also benefit from the Kingdom’s membership of the Great Arab Free Trade Agreement (GAFTA) and free trade agreement with the United States, Singapore, and Northern Europe.