The £170m plant will be built on land acquired from Tata Steel’s Deeside operations, just two miles from Knauf’s existing Queensferry facility.
It will use UK-first submerged arc furnace electric melting technology to slash embodied carbon.
The factory will have a capacity of over 100,000 tonnes a year, helping meet growing demand for non-combustible, recyclable insulation.
Construction is due to start next year with production targeted for late 2027, subject to planning and environmental approvals.
Neil Hargreaves, managing director for Northern Europe, said that the move marked a significant milestone for the firm.
The announcement follows a €50m investment across Knauf’s two UK glass mineral wool plants as the group doubles down on decarbonisation and supply resilience in the mineral wool sector.