£180m Shotton insulation plant clears key funding stage
Plans for a £180m low carbon insulation manufacturing facility in Shotton have moved forward after its outline business case for Growth Deal funding was approved.
The project, led by Knauf Insulation, has been given approval to proceed to the next stage by Ambition North Wales.
The proposal involves redeveloping land currently owned by Tata Steel into an advanced rock mineral wool manufacturing plant.
The facility would use submerged arc furnace technology to produce non-combustible insulation materials with low embodied carbon.
The total investment is valued at £180m, including £14.397m from the North Wales Growth Deal.
According to project figures, the development is expected to create 137 direct long-term jobs, alongside a further 131 indirect roles in the local area.
The scheme is also intended to support regional sustainability objectives and respond to increased demand for non-combustible construction materials following regulatory changes introduced after the Grenfell tragedy.
Cllr 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 Insulation said the investment would anchor its operations in the region and strengthen links with its nearby site in Queensferry. The proposed Shotton facility is expected to have an annual production capacity of more than 100,000 tonnes.
Ian Gornall, Project Director at Knauf Insulation Ltd, 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 supported by the North Wales Growth Deal is required to progress through an outline business case before submitting a full business case for final approval.
Approval of the outline case has enabled the project to move forward to internal sign-off by Knauf Group senior management in November 2025, with construction activity currently planned to begin during 2026.
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