Knauf Insulation will invest approximately €120 million in a sustainable manufacturing line featuring electric melting technology at its Novi Marof plant in Croatia.

The expansion will enable the plant to more than double its annual manufacturing capacity for energy saving solutions.

It will also create more than 70 new jobs in the process and expand the company’s European presence.

In addition, the new line will enable the plant to step up production of its technical, industrial and construction applications as well as the manufacture of Knauf Insulation’s Urbanscape green solutions.

Knauf Insulation estimates that the volume of solutions from the new line has the potential to save more than 1.5 million tonnes of CO2 emissions over its lifetime.

The electric melting furnace will cut direct greenhouse gas emissions by 80% compared to traditional technology.

Green electricity sourcing has been secured for the plant and the possibility to recycle in the production process will increase by 60%.

Construction is planned to start at the end of the year and the new line is expected to be fully operational in 2025.

Dominique Bossan, Knauf Insulation’s CEO for Europe, Middle East and Asia, and Member of the Knauf Group Management Committee, said the plant’s production focus will be mainly foreign markets with a planned export share of around 90%.

“Novi Marof’s construction solutions will be exported to neighbouring countries such as Italy, Slovenia, Hungary and Romania while the plant’s technical, industrial and green solutions systems will be supplied to the whole of Europe and overseas,” he added.

The expanded plant will be one of the largest sites in the Knauf Group, which has more than 300 manufacturing bases worldwide.

Stjepan Mršić, Novi Marof’s plant manager, said: “Although our business focus is international, Novi Marof has always prided itself as being a responsible local partner. The plant priority is sourcing its raw materials locally and we maintain business relationships with more than 150 local partners."