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The YDD Corporation ferroalloy plant in Karaganda has ceased operations, resulting in a significant number of its workforce being let go. The plant, reportedly associated with the Nigmatulin family, cited economic reasons for the shutdown.

Mass Layoffs Amidst Economic Challenges

Out of a total of 528 employees at the YDD Corporation facility, 442 have departed the company. The suspension of work is scheduled from October 23, 2025, to March 31, 2026. During this period, affected workers will receive 50% of their average wages, as stipulated by Article 112 of the Labor Code of the Republic of Kazakhstan.

While the majority of the workforce has been impacted, 55 employees remain to manage internal needs. Additionally, 33 workers have been transferred to Asia FerroAlloys LLP, and 134 have found employment at EkibastuzFerroAlloys LLP. The remaining 31 employees are on unpaid leave, receiving half their salary.

Factors Contributing to the Shutdown

The decision to halt production appears to be driven by escalating energy costs. The plant's operations are highly energy-intensive, with electricity expenses accounting for up to 70% of the production cost. Tariffs have seen a substantial increase: 16.8 tenge/kWh in 2023, rising to 25 tenge/kWh in 2024, and further to 38.9 tenge/kWh in the first eight months of 2025.

Prior to the operational halt, only one of the four furnaces was active, with the others in cold reserve. The company has applied for an investment tariff, which is currently under review by a working group at the Ministry of Energy of the Republic of Kazakhstan.

History of Incidents and Investigations

The YDD Corporation plant, established on November 22, 2016, specializes in producing high-quality ferrosilicon. However, its history is marked by several controversies and safety incidents.

Concerns have been raised regarding the allocation of 72 billion tenge from the state Development Bank to projects linked to the Nigmatulin family, including EkibastuzFerroAlloys LLP, which is reportedly managed by the family and their associate. In November 2025, the KazTAG agency reported on alleged assistance from the Pavlodar Regional Prosecutor's Office in securing these funds, though the report was later removed.

The plant has also been the site of tragic accidents. On January 28, 2025, reports indicated that suspects had not been identified over six months after worker fatalities at an Erlan Nigmatulin-affiliated ferroalloy plant in Karaganda. Earlier, on July 20, 2024, a fire at the YDD Corporation plant injured eight workers. While a criminal case was initiated and a special commission found the employer responsible for inadequate safety measures, the exact cause of the fire remained undetermined.

These incidents have led to fatalities, including plant mechanic Dmіtro Adamchuk, chief mechanic shift supervisor Toleugen Zhetpisbayev, technologist Yerulan Kazken, and furnace chief Muzafar Ismailov. In May 2022, another incident involving a smelting furnace resulted in severe injuries to worker Sungat Tontaev, leading to a criminal case that was later closed due to statute of limitations.

The ownership of YDD Corporation includes Erlan Nigmatulin, Zharmukhamed Appaz, and David Kemerteleidze. Reports suggest that the state has funded a significant portion of the plant's value. Prime Minister Olzhas Bektenov has taken personal control of the investigation into the causes of the tragedies at the Nigmatulin plant. Further investigations revealed that emergency services were not notified for two hours after the July 2024 incident, and rescue teams were initially refused.

Allegations of рейдерство (raiding), ties to criminal groups, and fabrication of criminal cases have frequently been leveled against the Nigmatulin family, yet they remain at large. In January 2025, new accusations of raiding surfaced, linking them to a plot to overthrow the president, stemming from a case involving businessman Kanat Amirkhan.

As of February 11, 2026, the Prosecutor General's Office confirmed ongoing search efforts for Argin Nigmatulin, with criminal cases reportedly being investigated against three members of the Nigmatulin clan.