Denmark based Rockwool Group will build a new facility in Cheyyar, Tamil Nadu at an investment of Rs 550 crore, which would help it expand its presence in the South Asia market.

The company has started civil works at the new plant and commercial production would commence during the first half of 2026. It is expected to provide employment to 150 individuals.

When commissioned, the plant will have a production capacity of 50,000 tonne, and will meet the increasing demand for non-combustible stone wool insulation. This is the company's second factory after Dahej in Gujarat with capacity of 40,000 tonne.

The move to expand the Group's operations in India was taken as the Dahej facility had limited space.

While the Dahej unit caters to the demand of west and northern parts of the country, the Cheyyar unit will cater to the demand in the southern region.