Exploitation of gypsum deposits in Arzamas district of Nizhniy Novgorod region began in the 18th century by local peasants who dug a number of primitive mine-galleries also known as bell-pits.

Peshelansky Gypsum Works was established in 1993 in the immediate vicinity of Bebyaevo gypsum stone deposit. Initially, gypsum stone was brought from the mine-gallery by horse-driven mine cars. In those days, little mechanization was available. However, the Company products were already well-known by civil contractors across Russia and even abroad due to the fact that its gypsum was in many respects superior to any other known analogs.

The first two apartment blocks, built by the Company for the workers, started the Peshelan township. By 1941, the community had 40 families.

A number of innovations resulted in an increased output and automation of some manual operations (in particular, the introduction of electric drilling in 1940). The mine was reconstructed and construction of new production facilities began.

Following a geological survey, a new high-strength gypsum production facility (Alabaster Works) was built near the village of Selischi in 1942-1943. Medical gypsum, produced by the new works, was noted for its high quality.

In a construction boom which began in the country after the war, the Company’s products were selling like hot pies.

Another geological survey to explore local gypsum deposits was conducted in the second half of the 1950s. Following that, the Company went through another modernization to ensure occupational safety and increase output.

On August 1, 1957, the gypsum and alabaster works merged into Peshelansky Gypsum Works.

In 1964, a new process line for the production of molding plaster was put into operation. The Company’s annual output of molding plaster, some 15-20 K tons, was sufficient to satisfy the needs of 70 porcelain and faience ware manufacturers.

With time, equipment and machinery became outworn. In 1976, the decrepit mine shaft was closed down for safety reasons. However, given the huge demand for high-quality gypsum all over the country, the USSR Construction Ministry (which ordered the closure) continued to issue temporary operation permits, simultaneously refusing to allocate funds for the mine’s reconstruction.

The commissioning of a new shaft in 1996 revitalized the Company and resulted in reduced production costs and improved quality. According to the local media, the Company was then supplying at least 120 K tons of the world’s best gypsum to the nation’s civil contractors. In 2002, during a 4-month reconstruction of an old workshop, it was converted for the manufacture of feather-and-slot gypsum boards for use in interior partitions, with the monthly rated capacity of 15,000 square meters.

In the same year, the district’s best sports stadium (with umpires’ room, changing rooms and showers) was built by the Company in just 2 months near its administrative building. Next in turn is the reconstruction of the Company’s old administrative building. The Company football team Shaktior (Miner), established in 1998, rated as one of the best in Arzamas district, won the third place in the 2004 Nizhniy Novgorod regional championship for A league teams.

On March 23, 2004, a new highly-computerized workshop with a rated production capacity of 600 K square meters per year (specializing in feather-and-slot gypsum boards for interior partitions) was put into operation. It is expected that this facility will generate some 8-10 million rubles in income on a monthly basis.