Major £180m Insulation Factory Project Secures Growth Deal Funding for North Wales
A significant new low-carbon insulation manufacturing plant, set to create more than 130 jobs in Flintshire, has successfully secured crucial funding from the North Wales Growth Deal. The ambitious £180m project, spearheaded by Knauf Insulation, will be established on a site in Shotton owned by the steel giant Tata, transforming it into an advanced rock mineral wool factory.
Innovative Technology and Sustainable Manufacturing
The facility will employ cutting-edge submerged arc furnace technology to produce insulation materials that are both low in embodied carbon and non-combustible. This approach directly addresses pressing challenges in the construction sector, including decarbonisation efforts and enhanced fire safety standards, particularly in response to regulatory changes following the Grenfell tragedy.
The North Wales Growth Deal, administered by Ambitious North Wales on behalf of the region's six local authorities, has approved a substantial £14.39m grant contribution towards the project. When questioned about the necessity of public funding, Ambitious Board North Wales emphasised that without this grant support, the project would not be viable. They confirmed that the funding complies with UK Subsidiary Control legislation, following specialised advice as part of their standard assurance procedures.
Job Creation and Regional Economic Impact
Beyond the immediate employment benefits—creating 137 direct long-term positions and 131 indirect roles—the project aligns with broader regional goals for sustainability and economic resilience. Dave Hughes, lead member for the Ambition North Wales high-value manufacturing programme and leader of Flintshire County Council, expressed enthusiasm for the initiative.
“This is an exciting project that brings together innovation and sustainability,” Hughes stated. “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.”
Strategic Investment and Future Growth
Knauf Insulation highlighted that this investment will anchor its operations in North Wales and strengthen connections with its existing Queensferry site. With a projected annual production capacity exceeding 100,000 tonnes, the new facility is poised to become a major contributor to the UK's sustainable construction manufacturing sector.
Ian Gornall, project director at Knauf Insulation, remarked: “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.”
Growth Deal Framework and Additional Initiatives
Each project within the North Wales Growth Deal undergoes a rigorous process, beginning with an outline business case and culminating in full business case approval. For this insulation plant, final approval from Knauf Group senior management was granted in November 2025, with construction scheduled to commence during 2026.
The broader North Wales Growth Deal aims to inject £1bn into the regional economy, with £240m committed by the Welsh and UK governments. The deal also seeks to attract £721m in private sector co-investment and £179m from the public sector.
In a related development, Ambitious Board North Wales is co-funding a £3m investment in the Society 5.0 manufacturing and business capability project, led by Wrexham University. This initiative aims to bolster the region's advanced manufacturing capabilities and foster new technological advancements within the sector.
This project will enhance the Growth Deal-funded CanfodAu – Centre of Engineering and Innovation – providing industry with access to additional high-precision engineering resources. The £1.5m committed from the deal is being matched by the Welsh Government’s MEDR, which supports research and innovation across the tertiary sector.
Government Support and Vision for the Future
Wales Office Minister Anna McMorrin commented on the investment: “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 leveraging the strengths of CanfodAu – Centre of Engineering and Innovation, it is anticipated that the project will accelerate innovation-led growth, reinforce the region's industrial foundation, and ensure North Wales plays a pivotal role in shaping the future of sustainable, inclusive, and digitally connected manufacturing.
