The German firm installed production line with the capacity of 60,000 tonnes of dry building mixtures a year the report said. The venture plans to export 40% of its products to neighbouring states.

Knauf International GmbH acquired 30.77% of shares of Bukharagips for US$1.55 million in September 2005. The German firm undertook investment obligations for US$6.3 million. Now, the German company holds 98.98% share in the enterprise and 1.02% owned by other shareholders.

In middle of 2010, Knauf plans to introduce plant for production of gypsum boards in Kagan, Bukhara region, with the cost of US$63 million. The capacity of the plant makes up 20 million square meters of gypsum boards a year.

Currently, there are two gypsum deposits in Uzbekistan - in Bukhara and Samarkand regions. Total capacity of gypsum stone production is 200,000 tonnes a year. Uzbek enterprises produce about 100,000 tonnes of building gypsum a year. Production of high-strength gypsum makes up 30,000-40,000 tonnes a year.

According to Uzstroymaterialy (Uzbek Construction Materials), currently the capacity of gypsum board at local enterprises is 15 million square meters, while domestic demand is about 40 million square meters a year.