Knauf is already developing a similar investment in Bulgaria which is meant to meet demand in southern Romania, while the plant near Cluj will do the same in northern and western Romania.
Company representatives said that the intention to build such a plant in Romania arose several years ago, due to the positive market conditions and the quality of the raw material on the market.
The new plant will become operational within two years of the start of construction works, the firm said.
Knauf Gips Bucuresti posted a turnover of EUR 40.5 million in 2007, an increase of 50 percent over 2006. According to company reps, it attained a sales growth for gyps carton plates and systems of 30 percent in Q1 of 2008 compared to last year, based on the development of its local real estate projects. For the entire year, the company has budgeted an increase of up to 20 percent.