Insulation factory in North Wales to create 140 jobs with £170 Million investment

Image Credit: Knauf Insulation

Knauf has unveiled bold plans for a £170 million manufacturing plant. The plant will rise on land purchased from Tata Steel’s Deeside operations, just two miles from the company’s current facility in Queensferry. This isn’t just another factory; it’s a significant step toward a greener future for the insulation industry.

At the heart of this project is a game-changing innovation: submerged arc furnace electric melting technology. It’s the first in the UK and is expected to cut embodied carbon emissions dramatically—a significant leap forward in sustainable manufacturing.

With a production capacity of over 100,000 tonnes annually, the facility is designed to meet the soaring demand for non-combustible, recyclable, and future-ready insulation. The push for safer, eco-conscious building materials is intensifying, and Knauf aims to be at the forefront.

Construction is slated to begin next year, and operations are targeted for late 2027, pending the usual planning and environmental green lights.

Neil Hargreaves, Managing Director for Northern Europe, called the announcement a “significant milestone” for the company, signalling its more profound commitment to innovation, sustainability, and the UK industry.

This project builds on momentum: it follows a recent €50 million investment across Knauf’s two existing UK glass mineral wool sites. It’s clear—the company is not just expanding capacity, but doubling down on decarbonisation and supply chain resilience in the mineral wool sector.

In a market shifting rapidly towards circularity and carbon accountability, this move positions Knauf as both a technology leader and a sustainability frontrunner.

Neil Hargreaves, managing director of Knauf Insulation Northern Europe, said: "Knauf Group has a proud history of manufacturing in Wales, and this project aligns with the Welsh and UK Governments' commitment to sustainability and the industrial vision for North Wales and Deeside.

"Using UK-first SAF technology, the new factory will produce non-combustible, low embodied carbon, recyclable rock mineral wool insulation to support the need for safer, more energy efficient and sustainable buildings."

Ken Skates, Cabinet Secretary for Transport and North Wales, said: "The plans will be a major investment in the area and are a testament to the skills and facilities we have here."