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(Shelbyville, Indiana) – Knauf Insulation plans to layoff about 65 employees at its manufacturing facility here as a result of economic conditions and projected sales.

In a letter to the state of Indiana, the company said the layoffs will start in mid January and probably exceed six months, but they weren't sure if they will be permanent. In a news release, officials said the announcement is as a result of depressed economic conditions and the recent housing downturn which has affected the entire building construction materials industry.

“It is our sincere regret that we must take this action at this time,” said Knauf Insulation President Bob Claxton. “To help ease the surprise and turmoil, we are informing our employees now about the upcoming adjustments in order to allow them to plan for the months ahead.”

The plant currently employs 457 hourly personnel. Some of the affected workers are represented by the Glass, Molders, Pottery, Plastics & Allied Workers of the United States and Canada, Local No. 32.

Knauf was founded in Germany in the 1930s as a gypsum processing business, according to its website. The company - with manufacturing operations in Europe, Russia, UK in addition to the USA - is now one of the fastest growing insulation manufacturers in the world with annual revenue of more than $1.5 billion. Its products include glasswool, rock mineral wool, expanded polystyrene and extruded polystyrene.

For more information on Knauf visit http://www.knaufinsulation.us/