Knauf Group invests more than EUR 200 million: Knauf significantly expands presence in Romania by opening two new plants

(Iphofen, Germany): The Knauf Group is supporting the Romanian government’s energy-saving and renovation offensive by substantially expanding its local plant capacity. The Knauf Insulation Group unit is building another insulation plant next to its current site in Tarnaveni, north of Sibiu. Together with the expansion of its existing production facility, which has been in operation since 2008, the dual site will thus multiply its annual output. Knauf is investing close to EUR 135 million in total at the Tarnaveni site.

At the same time, a new factory for plasterboard technology is being built in the town of Huedin, Transylvania, at a cost of around EUR 76 million. In total, Knauf is directly creating around 200 new jobs through the local investments, many of which are for highly qualified personnel. Both plants are being built in the region around Cluj, where they will be strategically located to supply Romania and the surrounding countries with modern building systems. 

As the world’s market leader for modern and sustainable lightweight construction, Knauf’s expansion supports the government’s ambitious plans for energy-efficient building refurbishment and the repair of the country’s housing stock. Romania’s Prime Minister Nicolae Ciucă welcomed Knauf’s initiative: “These German investments in our country are a signal of trust that strengthens economic relations. We highly appreciate Knauf’s recent commitment. The company has been expanding its presence in Romania for many years.” 

“The commitment demonstrates our trust and confidence in the country and our employees. We look forward to becoming part of the local community,” said Alexander Knauf, Managing Partner of the Knauf Group. “Together, we are setting new standards for building and living in Romania. I am very pleased that with this investment of more than EUR 200 million, we can support the energy saving initiative by providing the necessary building materials.” 

The national redevelopment plan envisages a six-fold increase in the building area of appropriately renovated properties in Romania over the next few years, in a best case scenario. Romania has set aside around EUR 30 billion in funding for this purpose in its Recovery and Resilience Fund (PNRR) alone until 2026. This will be supplemented by additional funds, from the EU Structural Funds, for example. The government thus wants to better equip the population against fluctuating and rising energy prices. In addition, energy-efficient building refurbishment strengthens regional development by creating growth, jobs and increases in property values. 

Also in view of climate change, the building sector is the focus of Romania’s modernization offensive. A large share of the country’s current housing stock is in need of renovation. New buildings are to be constructed in an energy-efficient manner in the future. The demand for the respective building materials is therefore quite high. In the European Union, 35 percent of CO2 emissions currently come from buildings. The use of insulating materials reduces dependence on energy imports and reduces the financial burden on users, especially low-income households. The use of dry construction technology also has a lower CO2 intensity compared to regional solid construction, is ideal for prefabrication and the material is fully recyclable. 

Romania increasingly important to Knauf

The importance of the Romanian market for the Knauf Group has increased in recent years. While the country initially imported Knauf building materials, the company now produces a good share of the products to cover the local demand here and exports to neighboring regions. In doing so, Knauf always promotes good neighborliness. The sister site in the Czech Republic serves as a model for the new insulation plant in Romania. There, too, Knauf prefers to source its raw materials from the region and supports local communities, in renovating older residential buildings or community facilities such as kindergartens or playgrounds, for instance.

Knauf Group
The Knauf Group is an internationally operating family-owned company based in Iphofen, in the Franconia district of Bavaria in Germany. The manufacturer of construction materials operates over 300 manufacturing plants and sales organizations in more than 90 countries on all continents and is a global leader in the manufacture of gypsum-based construction material and systems, energy-efficient insulation materials and system solutions in the ceilings sector. Founded in 1932, the Knauf group achieved a turnover of € 12.6 billion in 2021 and employs around 40,000 people world-wide.

Visit our website for further information on the Knauf Group at www.knauf.com.