Knauf plans an additional production line with state-of-the-art and sustainable electric melting technology at the Novi Marof plant in Croatia

Construction and insulation Group to invest around EUR 120 million in Croatia

Knauf Group, a global building materials and insulation company, is significantly expanding its activities in Eastern Europe. The insulation division Knauf Insulation plans to expand the company’s existing plant in Novi Marof in northeastern Croatia by adding a new production line. The investment, worth around EUR 120 million, was announced following a meeting between the Managing Partner Alexander Knauf and the Croatian Minister of the Economy Davor Filipović. It will lead to creating more than 70 additional direct jobs at Knauf Insulation.

The plan is to more than double the annual production of the Novi Marof plant. As with its current capacities, Knauf Insulation will predominantly manufacture insulation materials for the construction industry as well as for technical and industrial applications. In addition, systems for green roofs (known as Urbanscape®) are also planned to be part of the production portfolio. Construction works are scheduled to start at the end of this year; according to current planning, the new production line should be operational in 2025.

State-of-the-art technology for environmentally friendly production
The new production line will feature the latest technology and thus make a significant contribution to environmentally friendly production. For example, the use of a state-of-the-art electric melting furnace will reduce direct greenhouse gas emissions by 80 percent compared to conventional technology. The possibility to recycle in the production process will increase by 60 percent, and green electricity sourcing is secured for the plant. The insulation materials produced on the new line will reduce approximately over 1.5 million tons of CO2 emissions over their lifetime. The introduction of state-of-the-art technology is the beginning of the environmentally sound transformation of the entire Novi Marof site.

As before, the expanded plant in Novi Marof, which will then be one of the largest of the Knauf Group’s more than 300 production facilities worldwide, will manufacture insulation mainly for foreign markets with a planned export share of around 90 percent. In the case of construction products, these exports will include other neighboring European countries such as Italy, Slovenia, Hungary and Romania. Technical and industrial insulation and green roof systems, on the other hand, will be supplied from Croatia to all of Europe and overseas.

“Due to its location in the heart of Europe, its highly qualified workforce, and its good infrastructure, Croatia is an attractive investment location. As the world’s market leader for modern and sustainable lightweight construction, the expansion of our plant in Novi Marof will also enable us to contribute to the targeted energy-efficient refurbishment of the building stock in Croatia. We are very pleased that the Croatian government supports our investment, particularly in the context of the energy turnaround it is striving for”, commented Alexander Knauf.

Davor Filipović, Minister of Economy and Sustainable Development of the Republic of Croatia, welcomed Knauf’s project: “We are glad that a part of Knauf’s global business is already successfully operating in the Republic of Croatia. We are extremely interested in Knauf expanding its presence in our country. Therefore, we will provide all possible support and assistance to the extension project in Novi Marof.”

Knauf as a local partner in Croatia
In line with the Knauf Group’s strategy, the raw materials for production in Novi Marof will continue to be sourced locally. From the very beginning of its involvement in Croatia, Knauf has seen itself – in line with the Group’s set of values – as a regional partner in the sense of being a good neighbor. The company supports local institutions such as schools and kindergartens, sports clubs and playgrounds, and maintains business relationships with more than 150 local partners.

Knauf is a member of the German-Croatian Chamber of Industry and Commerce, the official representation of German business in Croatia, which also supported and accompanied the meeting with the Croatian Minister of Economy.

Knauf Group
The Knauf Group is an internationally active family-owned company headquartered in Iphofen, Franconia, Germany. The building materials manufacturer operates more than 300 production sites and sales organizations in over 90 countries on all continents and is a leading global producer of construction materials and systems based on gypsum, energy-efficient insulation and insulating materials, and system solutions in the ceiling sector. Founded in 1932, the Knauf Group achieved sales of EUR 15.4 billion in 2022 and employed a total of around 40,000 people.

For more information about the Knauf Group, please visit our website at www.knauf.com.