Advanced Inhalation Rituals (AIR) has announced plans to establish a new 70,000-square-foot manufacturing complex in Romania, forming part of its effort to shore up operations and distribution as it pursues a planned public listing. The Dubai-based flavored hookah products group expects the plant to begin operations in the first quarter of next year.
The company said the Romanian site will be its ninth production facility worldwide and will ultimately employ more than 150 people. AIR reported that the new factory will be capable of producing in excess of 4,000 tons of flavored shisha molasses each year.
Management framed the investment as a tactical response to an "increasingly uncertain geopolitical environment," saying the additional capacity will strengthen AIR's long-term operational base and increase supply-chain flexibility for its expanding product range.
The announcement comes after AIR reported revenue of roughly $400 million for 2025, representing 6% growth compared with the prior year. Adjusted earnings before interest, taxes, depreciation and amortization rose 8% to $139 million over the same period, with management citing strong performance in markets including Germany and Spain.
The company has been active on multiple fronts this year. In December, AIR revealed an acquisition of Germany's NameLess, which it said will be folded into a brand portfolio that already includes Al Fakher - noted by the company as a maker of flavored molasses for shisha pipes that served 14 million customers worldwide as of last year. AIR also markets OOKA, a pod-based device designed to replicate aspects of the hookah experience without the use of charcoal, and introduced Crown Switch, a rechargeable pod vape system, in Germany in November.
Hookah use has expanded in the United States in recent years, the company noted, driven by growing numbers of cafes and lounges offering flavored options despite health warnings from the U.S. Centers for Disease Control and Prevention.
Earlier, AIR reached agreement to go public via a merger with a special purpose acquisition vehicle sponsored by an affiliate of boutique investment bank Cantor Fitzgerald. The transaction with Cantor Equity Partners III values the combined entity at $1.75 billion and is expected to close in the second quarter of 2026, subject to regulatory approvals and customary closing conditions.
Once the merger is completed, the combined company - to be named AIR Global Limited - is intended to list on the Nasdaq under the ticker symbol AIIR.
Operational and market context
From a distribution and production standpoint, the Romania facility is positioned to increase AIR's manufacturing redundancy and support output growth tied to its portfolio of flavored products. The company has emphasized the plant's role in improving supply-chain resilience as geopolitical uncertainty persists.