2 minute read - 20th May 2025
Knauf to invest £170m building new factory in North Wales
Sustainable building material manufacturer Knauf Insulation has confirmed the intended location of its new state-of-the-art rock mineral insulation manufacturing plant.
Strategically located less than two miles from the existing Knauf Insulation Queensferry plant, the large-scale facility will be located in Shotton, North Wales and 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, non-combustible insulation solutions.
This major investment of circa £170m (€200m) will utilise UK-first, cutting-edge, submerged arc furnace electric melting technology to produce low embodied carbon insulation. 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 various 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.
Knauf Insulation is to invest £170m in building a new production plant in Shotton. The new North Wales facility is expected to create 140 new jobs / Picture: Knauf Insulation
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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.
The Shotton site was selected for its transport links and close proximity to other Knauf Insulation plants, which enable logistics optimisation. The proximity to existing operations will also facilitate a faster ramp-up, utilising existing process expertise.
Neil Hargreaves, managing director of Knauf Insulation Northern Europe, said: “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.”
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.
