Kingspan has appointed Mr Gene Murtagh jnr (33) to replace his father, Mr Eugene Murtagh (62), as chief executive of the building materials group with effect from January 1st. Mr Eugene Murtagh will remain with the group as non-executive chairman.

The move follows an undertaking given by Mr Eugene Murtagh at Kingspan's annual meeting last May to split the roles of chairman and chief executive, both of which he held.

Mr Gene Murtagh has been with Kingspan for 11 years and is chief operating officer.

Market sources said yesterday that he had impressed the investor community. They said he had a good track record, having delivered growth in both the insulated panel and environmental container divisions, where he was divisional managing director prior to becoming chief operating officer.

The Irish Association of Investment Managers (IAIM), which had been pushing for the dual chairman and chief executive role to be separated, said the announcement had been "well signalled to institutional investors".

The Cavan-based company also appointed former EU Commissioner and Attorney General Mr David Byrne as a non-executive director.

Mr Byrne replaces former AIB chief executive and Aer Lingus chairman Mr Tom Mulcahy, who resigned from the board earlier this year after being named as one of a number of former AIB executives with "tax issues" relating to investment schemes run by the bank.

Kingspan shares closed three cents higher at €6.73 last night in a generally weaker market.