Shipping pallet production facility to be built in Bahrain
PVAXX Industries breaks ground on its proposed 86 700 m2 pallet production facility in Bahrain and expects to generate annual revenues of up to $600 million
PVAXX Industries, a wholly owned subsidiary of PVAXX Limited, the Bermuda-based commercial materials sales corporation, last week broke ground on its planned 86 700 m2 shipping pallet production facility in Bahrain. At full operational capacity, the Bahrain facility will generate annual revenues of around US $600 million.
The event, held under the patronage of Sheikh Abdulla Bin Hamad Al- Khalifa, southern governor & head of the public commission for the Protection of Marine Resources, Environment & Wildlife, marks the start of construction on the $85 million project, which is expected to create more than 300 jobs for Bahrainis and represents the first investment in the newly developed Port and Industrial Area at Hidd.
“We welcome PVAXX and this new and exciting project to the Kingdom of Bahrain. This project marks an important milestone in the development of the Hidd port facility, which will see Bahrain join the ranks of the world’s largest ports. Further, coupled with the economic benefits and job creation opportunities this project will provide, it also serves to underscore the vast competitive advantages the Kingdom of Bahrain has to offer both local and international companies across a broad range of industry sectors,” said Sheikh Abdulla.
The manufacturing facility has been designed and is being built by Saudi consulting services, ‘Saudconsult’, the oldest engineering company in Saudi Arabia. Once operational in March 2005, the factory will be capable of producing composite pallets at a rate of around 1 million each week, making PVAXX Industries the largest single site global producer of pallets. While there are many manufacturers in the market, the Hidd facility will have the capacity to output in one month what its competitors produce in one year.
“The establishment of this facility puts both PVAXX and the Kingdom of Bahrain on the map as major suppliers to the world’s vast pallet market. Leveraging the competitive advantages of the Kingdom of Bahrain and the Gulf region, we aim to introduce into the market a highly competitive and sought after product. Already, we have seen considerable interest from among the world’s largest pallet consumers. With Bahrain as our flagship facility, we are rolling out further facilities that are in close proximity to low-cost raw materials,” said John O’Doherty, chairman, PVAXX.
The world demand for pallets continues to grow at a rapid pace driven by a strong global trend to palletise all goods for shipment. This demand is highlighted by the fact that the world’s largest manufacturing facility, now being built by PVAXX in the Kingdom of Bahrain, will only meet 0.5% of the total world market. Within the Gulf region the composite pallet market continues to grow due to a shortage of wood needed in the production of traditional wooden pallets. In other regions growth is being driven by environmental concerns.