German company Knauf is investing €150M in its second building materials plant in Ukraine.

The German company Knauf has begun constructing a new plant in Ukraine to produce plasterboard and dry building mixes. The enterprise will be in the town of Borshchiv in the Ternopil region. The second plant has a designed capacity that will produce 30 million square meters of plasterboard and 320,000 tons of dry mixes annually. Total project investment will amount to €150M.

The first Knauf plant was built in the Kyiv region in 2006 and has operated there since. The Kyiv plant’s production capacity is about 25 million square meters of plasterboard and 200,000 tons of dry mixes. The Kyiv plant employs 425 workers, with almost half having moved from Russian-occupied Soledar in the Donbas.

The second plant in Borshchiv is home to Knauf’s main raw material base in Ukraine – a gypsum quarry, with explored reserves that will last for at least 20 years of operation.

It is noted that the company first officially announced the suspension of any investments in Russia and then its final withdrawal from the aggressor state’s market.