German industrial firm RMA has launched a Bahrain-based subsidiary that will create 100 new jobs in the Gulf kingdom.
RMA Middle East has started operations at the Bahrain International Investment Park and its new 6,000 sq m plant will manufacture pipeline inspection gauge (PIG) traps, tee pipe fittings and insulating joints for the oil and gas sector.
RMA Middle East will also offer services to other local companies, it said in a statement.
RMA said it can additionally provide services like annealing, sandblasting, painting and various testing methods in the state of the art facility.
The company said it has invested €13m in the Bahrain plant which is its most advanced. It is expected to bring over 100 jobs to the kingdom, with 95 percent of output expected to be for export.
Kamal bin Ahmed, acting chief executive of the Bahrain Economic Development Board, said: "We are delighted to welcome RMA to Bahrain.
"Manufacturing is playing an increasingly important role in our economy as we diversify our source of growth - investment from leading international firms like RMA will make a positive difference in creating high quality jobs and boosting the manufacturing base in Bahrain and the wider region."
Andreas Truttenbach, CEO of RMA, added: "We are very pleased to be launching our regional operations, and our first manufacturing plant, in Bahrain.
"The Gulf market, which now exceeds $1trn, presents an excellent opportunity for manufacturing firms, and we think that this facility in Bahrain will give us the best opportunity to access that growing market."
The decision to establish a facility in Bahrain came after direct efforts from the EDB and following a visit in 2010 by a high-level RMA delegation, headed by Truttenbach.
RMA will join many of the world's leading manufacturing companies in Bahrain including BASF, the world's leading chemical company, and German engineering giant Siemens.
Manufacturing is a key component of Bahrain's economy, accounting for approximately 16 percent of GDP. The growth in the regional economy has helped to boost the sector further, with year-on-year growth of over 15 percent in Q2 2012.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.