Manufacturer Knauf Insulation has announced a £170m ($225.7m) investment for constructing a new manufacturing facility in Shotton, North Wales, UK.

The plant will produce over 100,000 tonnes (t) of noncombustible rock mineral wool insulation annually, with additional employment opportunities in local supply chains.

This development is expected to create around 140 direct jobs. The investment aligns with ongoing discussions at the UK-EU summit focused on economic growth and is supported by the UK and Welsh governments, as well as local leadership.

The North Wales Growth Deal and the Flintshire and Wrexham Investment Zone have been instrumental in securing Knauf Insulation’s commitment to the region.

Knauf Insulation’s expansion in North Wales will enhance the advanced manufacturing cluster in the area.

The Shotton facility will be constructed on land bought from Tata Steel’s Deeside operations, about two miles from the Queensferry facility of Knauf.

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Subject to planning and environmental clearances, construction of the Shotton facility is expected to commence in 2026, with production aimed for late 2027.

UK Secretary of State for Wales Jo Stevens said: “This £170m 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.”

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

“Using UK-first Submerged Arc Furnace technology, the new factory will produce noncombustible, low embodied carbon, recyclable rock mineral wool insulation to support the need for safer, more energy-efficient and sustainable buildings.”

Knauf Insulation provides a range of insulation solutions for all applications in commercial and residential buildings.

In the broader context, the UK’s Labour government committed to making decisions on at least 150 infrastructure projects and building 1.5 million homes as part of its ‘Plan for Change’ initiative last December.