Knauf International GmbH (Germany) completed construction of capacities on production of gypsum boards in Kagan (Bukhara region) of Uzbekistan with the cost of US$50 million.

The designed capacity of the plant is 20 million square meters a year. The project will be financed due to direct investment of the German firm, Gazeta.uz reported.

Knauf International GmbH purchased 30.77% of state assets in Bukharagips for US$1.55 million and undertook obligation to invest US$6.3 million in three years. Currently, Knauf holds 98.98% stake in enterprise and employees and other shareholders – 1.02%. The enterprise specializes on production of dry gypsum mixtures.

The enterprise was founded in 1934. Bukharagips owns gypsum mine with reserves for 45.028 million tonnes with 90-100% calcium content, lime mine with reserve of 7.8 million tonnes, as well as mines.

Knauf International GmbH launched production of dry gypsum mixtures in 2009 at the base of Bukharagips. The capacity of the plant is 60,000 tonnes a year. The plant plans to export 40% of goods to neighboring states.