Manama: US firm WestPoint Home (WPH) has invested $9 million in its Bahrain manufacturing complex for its third spinning capacity expansion, it was announced yesterday.
The investment marks WestPoint Home’s third expansion in Bahrain over the past five years and more than $160m of investments in total over the past 10 years in its Bahrain operations, where products produced generate more than 50 per cent of the company’s total global revenues annually.
The new facility was inaugurated yesterday by Industry, Commerce and Tourism Ministry under-secretary for industrial affairs Osama Al Arrayedh and US Ambassador William Roebuck during an event held under the patronage of Industry, Commerce and Tourism Minister Zayed Al Zayani.
Also present were WPH chief executive Normand Savaria and American Chamber of Commerce Bahrain (AmCham) president Qays Zu’bi.
Mr Al Arrayedh said WestPoint Home is a great success story of the US-Bahrain Free Trade Agreement (FTA).
“Expanding exports is a strategic necessity for the government and this must also be part of essential business strategy for the Bahraini private sector,” he added.
Initiated in 2015, the expanded facility has increased the company’s spinning capacity by 38pc.
“Spinning more yarn in Bahrain will decrease lead times, increase flexibility and will, along with other initiatives, help to mitigate the impact of the tariff preference level expiration last year and will allow the company to continue to import Bahrain-manufactured textile products into the US duty-free,” Mr Savaria told the GDN on the sidelines of the event.
“This is in no small part a result of the kingdom’s business-friendly practices and the tremendous support that we have received from various government ministries as we have continued to invest in expansion and the hiring and training of local talent,” he added.
Mr Savaria said the firm’s exports from Bahrain to the US had increased by 15pc just last year.
More than $25m has been invested in Bahrain on expansion of capacity, capabilities and environmental projects within the last three years.
This includes additional weaving, the spinning projects, expansion of manual and automatic sewing and embroidery capacity. All this will effectively allow the company to build on more than $100m of exports annually from Bahrain to the US as well as enhance “the ability to further sales in other regional and international markets”, he added.
“In the last two years, we have turned over the running of our Bahrain operations to a regional management team, who have implemented Lean and Six Sigma programmes and elevated efficiency and quality levels to all-time highs.
Also under discussion at the ceremony were additional investments in the kingdom including further expansions in production capacity aimed at capitalising on growth opportunities in the GCC and European markets in addition to the US.
In 2014, WPH hired a Bahrain-based sales and marketing team to service the retail and hospitality customers in these markets to great success.
Through this initiative, the company has added to its customer base high-profile companies including Frette, Fremaux, Jumeriah Group, Movenpick Hotels, the Gulf Hotel and several other regional retail chains.
The company estimates that sales generated by this group will grow over the next three years from the current rate of 3pc to 20pc of the total output from its Bahrain facilities.
WPH manufactures and sells products globally to leading retail and hospitality customers under popular owned brands including Martex, Vellux, Grand Patrician, Patrician, Luxor, Utica, Modern Living and Nostalgia.
Under licensing agreements, the company produces and distributes products under the brands Rachel Ashwell, Southern Tide, Izod, Jill Rosenwald, Collier Campbell, Portico, Under the Canopy, Amy Sia, Bini Chic, Dena Home and Haute Girls, Downton Abbey, Kathy Davis and Shell Rummel.
avinash@gdn.com.bh
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