Mongolia inaugurated its first domestically produced eco-gypsum board factory on May 24 to reduce its dependence on imported construction materials as the building sector continues its rapid expansion. 

President U.Khurelsukh and Minister of Urban Development, Construction and Housing E.Bat-Amgalan attended the opening ceremony of the “Alpha” eco-gypsum board factory alongside management and staff. The facility, which broke ground in September 2024, was completed and commissioned within roughly two years.

The timing is significant. Gypsum board imports into Mongolia nearly doubled in just two years, rising from 8.8 million square meters in 2023 to 18.5 million square meters in 2025. The Alpha factory’s annual production capacity of 10 million square meters positions it to meet the bulk of domestic market demand and significantly cut the foreign exchange outflows that have accompanied the import surge.

A key competitive advantage of the facility is its use of gypsum sourced from the company’s own deposits, ensuring a stable raw material supply that fully meets hygiene and ecological standards.

Minister E.Bat-Amgalan said the Government’s ambitions extend beyond simple import substitution. “We are working to develop our domestic production not only at the import-substituting level, but also as an export-oriented, high-value-added and international-standard production,” he said at the inauguration, expressing hope that Alpha would grow into a factory that becomes a source of national pride.

Gypsum board is a core material in modern construction, widely used in interior walls, ceilings and partitions. Mongolia’s construction sector has seen sustained growth driven by urbanization, large-scale infrastructure investment and a housing shortage in Ulaanbaatar, where demand for affordable and fast-built residential and commercial space continues to outpace supply.