The £180m new insulation factory project for North Wales that will create more than 130 jobs

The project from Knuaf Insulation has secured a grant contribution from the North Wales Growth Deal

A new low carbon insulation manufacturing plant that will create more than 130 jobs in Flintshire has secured funding from the North Wales Growth Deal. The £180m project from Knauf Insulation, on a site in Shotton owned by steel giant Tata, will create an advanced rock mineral wool factory. The facility will use submerged arc furnace technology to produce low embodied carbon, non-combustible insulation materials.

The North Wales Growth Deal, which is administered on behalf of the six local authorities of the region by Ambitious North Wales, has agreed a £14.39m contribution towards the project in the form of a grant.

Asked why the project could not be wholly privately financed, Ambitious Board North Wales insisted that without its grant contribution it could not be realised. Like other investments from its Growth Deal it said the grant funding is compliant with the UK Subsidiary Control legislation, having taken special advice as part of its standard assurance process.

As well as creating 137 direct long-term jobs and 131 indirect roles, the project will support regional goals for sustainability and resilience, particularly in response to regulatory changes following the Grenfell tragedy, which have led to increased demand for non-combustible building materials.

Dave Hughes, lead member for the Ambition North Wales high value manufacturing programme, and leader of Flintshire County Council, said: “This is an exciting project that brings together innovation and sustainability. We’re proud to support a project that tackles some of the most pressing challenges in construction – from decarbonisation to fire safety – while securing long-term employment and investment for our communities.”

Knauf said its investment will anchor its operations in the region and strengthen links with its nearby Queensferry site. The new facility, with a projected annual production capacity of more than 100,000 tonnes, would become a major player in the UK’s sustainable construction manufacturing sector.

Ian Gornall, project director at Knauf Insulation, said: “We’re delighted to see the Growth Deal funding approved – it’s a major milestone for us and shows the commitment we share with Ambition North Wales to deliver sustainable manufacturing for the future.

“This investment underlines our confidence in North Wales as a hub for innovation and advanced manufacturing. The new facility will help us meet growing demand for non-combustible, low-carbon insulation, supporting the UK’s net zero and building safety goals.”

Each project within the North Wales Growth Deal is required to develop an outline business case, which forms part of a structured process concluding with the approval of a full business case as the final decision point. Approval of the business case paved the way for final project approval by Knauf Group senior management in November 2025, with construction activity planned to commence during 2026.

The North Wales Growth Deal is aiming to see £1bn of investment into the region’s economy, with £240m committed by the Welsh and UK governments. The deal’s projects are also seeking to secure co-investment of £721m from the private sector and £179m from the public sector.

Ambitious Board North Wales, a statutory body, has also confirmed it is part funding a £3m investment for the society 5.0 manufacturing and business capability project. Led by Wrexham University, it aims to strengthen the region’s advanced manufacturing capabilities as well as support the development of new technologies in the sector.

The project will enhance the Growth Deal funded CanfodAu – Centre of Engineering and Innovation – to enable industry to access further high precision engineering resources.

The £1.5m committed from the deal is being match-funded by the Welsh Government’s MEDR (the Commission for Tertiary Education and Research), which supports research and innovation across the tertiary sector.

Wales Office Minister Anna McMorrin said: “North Wales is already home to a thriving advanced manufacturing sector, and this investment will help build on that strength, cementing the region’s growing reputation for innovation.

“The UK Government, through our funding of the North Wales Growth Deal, is investing in the industries of the future which will drive economic growth and create new highly skilled and well-paid jobs.

“By building on the strengths of CanfodAu – Centre of Engineering and Innovation, it is hoped the project will accelerate innovation-led growth, strengthen the region’s industrial base, and ensure that north Wales can play an important role in shaping the future of sustainable, inclusive, and digitally connected manufacturing.”