Mercedes Backs Out of Kingspan Deal

Formula One team Mercedes-AMG announced on Thursday it has ended its controversial sponsorship agreement with Ireland based insulation firm, Kingspan.

Kingspan is currently involved in an ongoing public enquiry investigating its links to Britain’s 2017 Grenfell Tower fire that caused 72 deaths.

Kingspan produced the cladding that contributed to the blaze, which took fire crews more than 60 hours to douse after it broke out in June 2017.

The partnership between Mercedes-AMD and Kingspan was signed on 1 December, whilst Kingspan was involved in the public enquiry resulting in strong backlash.

The nation’s housing minister Michael Grove wrote to Mercedes-AMG, saying he reacted to the news with “deep disappointment of [the] decision to accept sponsorship from the cladding firm Kingspan.”

“The Grenfell bereaved, survivors and wider community have been failed in the past by both the state and the private sector.

“They are right to feel deeply hurt and aggrieved by your decision to sign this sponsorship deal whilst the public inquiry continues,” Grove said.

In a statement by Mercedes AMG, the team said: “The Mercedes-AMG Petronas F1 team and Kingspan have announced they have mutually agreed to end their partnership.”

“Announced last week, the new partnership included Kingspan chairing a new sustainability working group for the team and aimed to deliver carbon reductions through their leading-edge environmentally sustainable solutions for the team’s future campus.

“However, both parties have subsequently concluded that it is not appropriate for the partnership to move forward at the current point in time, notwithstanding its intended positive impact, and we have therefore agreed that it will be discontinued with immediate effect,” the team said.

The announcement comes off the back of Formula One star and Mercedes-AMG driver, Lewis Hamilton distancing himself form the brand over the most recent race weekend.

The deal was estimated to be worth approximately $AUD7.4 million.