Rockwool invests euro100m to double UK capacity

Rockwool Group underline its belief future of UK's sustainable building market by announcing euro100 million investment.

The euro1.5 billion turnover Rockwool Group has underlined its belief in the buoyant future of the UK's sustainable building market by announcing a euro100 million investment to double UK manufacturing capacity from its Bridgend, South Wales plant by the end of 2008.

New UK Managing Director Hans Schreuder said:" Rockwool has seen a phenomenal increase in demand for its products and services".

"In a climate where other manufacturers struggle to meet growing legislative pressures for greater transparency over the fire and thermal performance of insulation, Rockwool products provide a complete solution which leaves the rest of the market behind".

Buildings currently account for 44% of carbon emissions in the UK.

Rockwool is well placed through its sustainable products and manufacturing processes to help meet the Government's 2010 targets.

If all existing building stock were to be upgraded to meet current building regulations, the UK would exceed its CO2 targets.

Rockwool insulation has the highest CEN Fire Certification A1 rating, meaning it is non-combustible.

The wide ranging October 2006 Regulatory Reform Order, and April 2007 Building Regulations Part B changes, have placed increasing pressure on specifiers and installers of fire protection measures, as well as building developers and owners.

All these stakeholders have a legal responsibility for fire protection products in building design and ensuring high degrees of protection for building users and fire service personnel.

Rockwool is manufactured using igneous volcanic rock, an abundantly-available resource which in its lifetime can save 100s of times the greenhouse gases generated during its production.

Sustainable manufacturing ensures that 50% of Rockwool by weight is made from recycled or reused materials.

The expansion includes the introduction of one of the world's most technically-advanced production lines, enabling the development of higher-quality, lower-density products for the UK, Irish and European markets.

The investment incorporates new warehousing, technical support and distribution facilities to support the increased capacity and ensure a responsive and flexible service, industry-wide.

To meet the needs of distributors and merchants, the investment includes significant advances in palletisation.

Site construction is expected to start soon and is expected to be operational before the end of 2008.

The Rockwool Group has seen a huge expansion in its manufacturing operations worldwide to keep pace with demand.

In parallel to the UK expansion, new facilities have been built in Croatia and Russia along with planned further expansion in North America and Poland.

Quoted on the Copenhagen Stock Exchange, the Rockwool Group saw a huge growth in pre-tax profits from euro 32 million in 2002 to euro187 million in 2006, boosted by a 15% increase in sales reaching euro 1,546 million in 2006.

Rockwool worked closely with the Welsh Assembly to secure the investment for Wales and the Welsh Assembly is to contribute a GBP4.75 million regional assistant grant to the project.

The investment is expected to have a significant economic impact in South Wales and secure up to 1,500 jobs through direct and indirect employment in the region.

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