Denmark based Rockwool group is building a new factory in Cheyyar at an investment of ₹550 crore to meet the increasing demand for non-combustible stone wool insulation and to expand its presence in the fast growing South Asia market, said a top official.

“This is our second factory in India after Dahej, Gujarat. When commissioned it will have a production capacity of 50,000 tonnes against 40,000 tonnes in Dahej,” Chairman Thomas Kahler said at a press meet.

According to him, the company decided to expand its operations in India after 13 years as the Dahej facility had limited space. Initially 90% of the production at Dahej was exported. Today, the exports is around 10% and India’s revenue is ₹250 crore.

“While Dahej unit caters to the demand of west and northern parts of the country, the Cheyyar unit will cater to the southern market. It is a Made-in-India product and initially it will cater to domestic demand,” he said.

Rockwool Asia Managing Director Darryl Mathews said that the company had started civil works at the Cheyyar plant and commercial production would commence during the first half of 2026. It will provide employment to 150 people.