Knauf Insulation has announced plans for a £170 million new low-carbon rock mineral insulation plant to be based on Tata Steel's Shotton site in North Wales, home to Colorcoat and Building Systems UK.
Knauf Insulation, one of the leaders in sustainable building materials, is proud to confirm the intended location of its new state-of-the-art rock mineral insulation manufacturing plant in Shotton, Flintshire, North Wales (UK).
Strategically located less than two miles from the existing Knauf Insulation Queensferry plant, the large-scale facility will be constructed on land to be acquired from Tata Steel’s existing operational steelworks in Deeside. With an annual capacity in excess of 100,000 tonnes, the new plant demonstrates a strong commitment to meet the growing market demand for sustainable insulation solutions.
Neil Hargreaves, Managing Director of Knauf Insulation Northern Europe, commented: “One year on from our original announcement about our commitment to build the new facility, today is a significant milestone not just for Knauf Insulation, but for the local communities of Deeside, and the wider UK construction sector. Our new plant will offer innovative insulation solutions that safely reduce energy consumption and carbon footprints in the built environment, while also creating meaningful job opportunities and long-term economic benefits locally.”
Dominique Bossan, CEO of Knauf Insulation EMEA Region, added: “Following the recent €50 million+ investments across our two UK glass mineral wool plants, the Knauf Group are confident in the future growth of the UK and Northern European mineral wool markets and today’s announcement represents yet another exciting development for our people, our local communities, and our valued customers.”
Beyond delivering an even more sustainable portfolio of products, the planned Shotton facility is poised to play a vital role in the local economy. The project is expected to generate around 140 direct jobs across a variety of roles; from skilled manufacturing positions to engineering, warehouse and administrative functions. Additionally, the plant will further stimulate regional supply chains and create additional indirect employment opportunities.
Jo Stevens, Secretary of State for Wales said: “This £170 million investment by Knauf Insulation is fantastic news for North Wales and our UK Government mission to drive economic growth. This is a vote of confidence in the Welsh economy and our government’s plan to make Britain the destination of choice for investment in industry.”
The investment in the new Shotton plant allows Knauf Insulation to further decarbonise and significantly increase its UK and export supply of rock mineral wool products, complementing its existing Queensferry facility. The new factory will address the market’s growing need for insulation solutions with ultra-low embodied carbon and play a critical role in helping the UK achieve its net zero and energy security goals.
In a joint response, Cllr. Mark Pritchard, Leader, Wrexham County Borough Council and Chair, Ambition North Wales and Cllr. Dave Hughes, Leader, Flintshire County Council, Board Member, Ambition North Wales, said: “The decision by Knauf to locate its new plant in Deeside is incredibly positive news, not only for those living and working within the Flintshire and Wrexham Investment Zone, but extending across North Wales. The development will build on Knauf’s already strong presence, and support growth in what is becoming a globally significant advanced manufacturing cluster in the region. Benefits will be far reaching – from skills development and the creation of high-value jobs, to attracting further inward investment, all while focusing on sustainability and protecting our environment for the future.”
The Shotton site was selected for its excellent transport links, and being close to other Knauf Insulation plants enables logistics optimisation for the benefit of customers. The proximity to existing operations will also facilitate a faster ramp up, utilising existing process expertise.
Local authority Leaders from Flintshire and Wrexham - councils which are progressing a new Investment Zone in partnership with Ambition North Wales, welcomed the announcement by Knauf.
Subject to planning, environmental and other considerations, construction of the Shotton plant is scheduled to begin in 2026, with production anticipated to start by the end of 2027.
From L-R Neil Cockerton - CEO, Flintshire County Council , Dominique Bossan - Knauf, Jo Stephens MP, Ken Skates MS, Neil Hargreaves - Knauf
For further information, please contact:
Stephen Sandsmith (Chapter One)
ssandsmith@chapter-one.co.uk
07956 015446
About Knauf Insulation
- Knauf Insulation is the UK’s largest insulation manufacturer. It makes low-carbon glass and rock mineral wool insulation for use in residential, commercial and public buildings.
- Knauf Insulation exists to create better buildings, working in partnership with designers, contractors, merchants, policymakers and others to drive higher standards for energy efficiency, fire safety, acoustics and sustainability.
- Knauf Insulation employs more than 6,000 employees and has 28 manufacturing sites in 15 countries. In the UK, the company employs approximately 600 people at its manufacturing plants in Cwmbran, Queensferry and St Helens. It is part of the Knauf Group, a multi-national family-owned manufacturer of building materials and construction systems.
- Read more at www.knauf.com
About Tata Steel UK
- The Tata Steel Group has been named one of the most ethical companies in the world, and is among the top producing global steel companies with an annual crude steel capacity of 34 million tonnes.
Tata Steel in the UK has the ambition to produce net-zero steel by 2045 at the latest, and to have reduced 30% of its CO2 emissions by 2030. - In October 2024, Tata Steel ceased ironmaking at its Port Talbot site and temporarily paused steelmaking pending the construction of a 3.2Mtpa Electric Arc Furnace, due to be commissioned late in 2027 / early 2028. For that period, the business will import slab and hot rolled coil to support manufacturing and distribution operations at sites across Wales, England and Northern Ireland as well as Norway, Sweden, France, Germany and UAE. It also benefits from a network of sales offices around the world.
- Throughout 2024 Tata Steel UK has been undergoing a restructuring that will reduce the size of its workforce to around 5000 direct employees, supplying high-quality steel products to demanding markets, including construction and infrastructure, automotive, packaging and engineering.
- Tata Steel Group is one of the world's most geographically-diversified steel producers, with operations and a commercial presence across the world.
- The group recorded a consolidated turnover of around US$26 billion in the financial year ending March 31, 2025..
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