Insulation manufacturer Kingspan has confirmed that it and the Mercedes AMG Petronas Formula 1 Team have jointly decided to end their controversial sponsorship deal a week after it was announced.

The move follows criticism of Mercedes for entering the multi-million euro agreement with Kingspan.

The Irish company has been linked with the Grenfell Tower fire in London in which 72 people died four years ago.

Kingspan's Kooltherm K15 material made up 5% of the insulation layer on the outside of the tower, but the company claims it was misused in an unsafe way without its knowledge.

However, it emerged at the inquiry that K15 had failed several full-scale fire tests and was being marketed for high rise buildings like Grenfell.

Kingspan has subsequently completed new tests which it says supports the previous fire safety claims.

In a statement, Kingspan said that when Mercededs AMG Petronas F1 Team approached it to chair their new Sustainability Working Group, it saw it as "a unique opportunity" to bring sustainability and sport together.

"We are deeply aware of the sensitivities raised in recent days, and so we have jointly agreed that it’s not appropriate to move forward at the current point in time," it said.

Kingspan added that it had no role in the Grenfell Tower refurbishment.

But it also acknowledged that its UK business is a core participant in the Grenfell Tower Inquiry and that it fully supports the inquiry’s important work.

It also pointed out that that the inquiry itself has stated that the principal reason for rapid fire spread on Grenfell was the polyethylene cored Aluminium Composite Material (ACM) cladding used on the exterior of the building.

But Kingspan said it did not supply or recommend the use of its K15 product to Grenfell Tower and it was substituted in without its knowledge.

Mercedes AMG Petronas had come under increasing pressure in recent days to ditch Kingspan, because of the Cavan company's links to Grenfell, particularly given that the inquiry has not concluded.

It was also accused of using the deal with Kingspan as a form of corporate "greenwashing".

It was also accused of using the deal with Kingspan as a form of corporate "greenwashing".

Mercedes had faced calls to act ahead of this weekend's season finale Grand Prix at Abu Dhabi where its driver, Lewis Hamilton, could retain his title depending on the outcome.

At last week’s Saudi Arabian Gran Prix, Kingspan’s logo appeared on the side of the cars driven by Lewis Hamilton and team mate Valtteri Bottas.

Toto Wolff, the head of the Mercedes team, apologised to survivors of Grenfell and the relatives of those who died in recent days.

UK Communities Secretary, Michael Gove, and other politicians had also urged Mercedes to reconsider the deal.

Kingspan shares were lower in Dublin trade today.