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April 27, 2016

The Right Approach


Germany’s Knauf is planning to launch a new major project in Uzbekistan’s Bukhara Region. The idea is to build a new plant producing dry mixes and increase the capacity of current plasterboard production over the next five years.

The project will be divided into three phases. The first phase, which has already started, envisages the purchase of modern equipment for expanding the existing production line of gypsum boards. The construction of a new building is currently underway. The new dry mixes plant will be built on the second phase, and the third phase envisages the launch of the gypsum calcination line.

The renovated company will double the annual production of dry mixes, and the upgraded plasterboard plant will increase its capacity by 30%.

“Our company has been supplying the construction market with domestically produced modern high-quality construction and finishing materials like gypsum plasterboard and dry construction mixtures that meet all regulatory requirements, convenient and safe to use. In the short term, we will launch new import-substituting capacities, as well as the production of floor plasterboard,” shared the Director of the Tashkent branch of Knauf Gypsum Bukhara Shukhrat Abdujamilov.

It is worth noting that the company intends to make big investments despite the ongoing crisis on the world market and the devaluation of national currencies of in the countries that import its products. Last year, the company exported products to the neighboring countries at $7 million.

“We are confident in the success of our new initiatives, because Uzbekistan has established an effective system of support for foreign investors. Moreover, big infrastructure projects are in progress: the stuff we produce is widely used in the construction of standard design housing and new production facilities. Last year, we produced 24 million square meters of plasterboard and 50,000 tons of dry mixes, and most of them have been used in the domestic market,” said the Director General of Knauf Gypsum Bukhara Dmitry Deripalko.

The company’s management believes that their initiatives will be supported by the Government of Uzbekistan in promoting the reinvestment of funds so that the project could be completed in a shorter time.

The availability of raw material resources is another important advantage of the enterprise. The company produces about 40,000 tons of gypsum per month and sells nearly 25,000 tons to other enterprises like cement plants, and even to its competitors – producers of plasterboard, dry mixes and plaster.

Import substitution of raw materials remains a relevant priority, while maintaining the famous German quality, noted Dmitry Deripalko. This process depends directly on the localization of raw materials by local suppliers. There is certain progress in this direction – one of the companies has launched the development of the production of dry mix packaging.

The story of Knauf in Uzbekistan started in 2005, when the company purchased the shares of the Bukharagips company with investment commitments for the development and modernization of production. The production of dry mixes was launched in 2009, after a big overhaul. A gypsum board plant was commissioned in 2011 in the Bukhara region. The total investment of German companies in the establishment of modern production facilities in Uzbekistan has exceeded $63 million.