(SHELBYVILLE, Ind., October 15, 2004)  Knauf Insulation today announced its intention to expand its Shelbyville manufacturing operations, investing more than $150 million in equipment modernization and the addition of new manufacturing lines and warehousing facilities to meet increasing customer demand.  The announcement will mean a 50% increase in capacity in Shelbyville for Knauf's industrial and commercial products, uncured insulation and light density products.

 

“Over the last 25 years, Knauf has established a reputation as a leader in product quality and customer service,” said Bob Britton, Knauf’s president.  “Now we’re in the great position of needing to grow to meet demand and stay competitive.  We’re seizing this opportunity to expand and modernize and position Knauf for another 25 years of success.”

 

The new facilities will produce Knauf’s commercial and industrial insulation products – including duct and equipment insulations and uncured products – as well as some light density building insulations.  The expansion will encompass 400,000 square feet in warehousing and production facilities.  Work on the utility infrastructure for the expansion will take place over the winter, with a formal groundbreaking in spring 2005 and completion expected in late 2007-2008.

 

Britton also addressed Knauf’s decision to expand existing facilities in Shelbyville rather than build a new plant at an alternate location. “Knauf’s success is due in large part to our people, a team of the most-experienced and best-trained workers in the insulation industry.  Our employees are enthusiastically committed to maintaining our high standards for quality, and growing in Shelbyville helps us keep that advantage.”

 

Britton also noted that support from state and local government was important to making the Shelbyville expansion feasible from a business standpoint.

 

Knauf Insulation is a leading U.S. manufacturer of thermal and acoustical insulations for residential, commercial, industrial, OEM and metal building applications.  For more information about Knauf sales and products, visit http://www.knaufusa.com/, write to Knauf Insulation, One Knauf Drive, Shelbyville, IN  46176 or call 800-825-4434.