Mumtalakat signs deal for $40 million copper tube mill

Bahrain Mumtalakat Holding Company, the investment arm of Bahrain, has announced the signing of an agreement with Mueller Industries, a leading manufacturer and distributor of flow control and industrial products 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 US$40 million in the facility, which will address the increasing demand for quality copper tubes in the Middle East and North Africa 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 per cent 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 30pc stake in the joint venture. Cayan will invest, structure and mobilise the project and will also hold a 30pc stake in the joint venture. 

Commenting on the deal, 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.

“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,” he added. 

Mueller Industries CEO Greg Christopher said, “This mill will produce copper tube for the air conditioning and refrigeration markets and will have the capacity to support the surrounding MENA region.”

Cayan’s Managing Partner Thomas F. Stein added, “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.”