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The former auto manufacturing plant of Asia Auto in Oskemen، a significant industrial site in Kazakhstan، is attracting attention from potential investors. Officials have confirmed that Kazakh entrepreneurs have expressed interest in purchasing the facility.

This development was announced by Yerbolat Nagaspayev، the Minister of Industry and Construction of the Republic of Kazakhstan. According to Nagaspayev، the legal proceedings concerning the Asia Auto company concluded in 2025. The minister noted that the plant's infrastructure and workforce are still in place، suggesting a possibility for revitalization.

Investor Interest Confirmed

"The base for automotive production in Oskemen still exists. The workers are also here. We are looking into this matter. We are receiving proposals. Yes، there are those who wish to purchase it. Among them are Kazakh citizens،" Nagaspayev stated.

However، the minister clarified that Chinese investors have not shown interest in acquiring the asset.

History of Asia Auto's Challenges

Previously، in December 2025، Olzhas Saparkulov، Vice Minister of Industry and Construction، had also mentioned that the possibility of resuming auto production at the Asia Auto plant was being considered. These efforts، however، were complicated by ongoing legal cases.

Numerous lawsuits have been heard involving Asia Auto and its affiliated companies. These included issues related to assets pledged as collateral to First Heartland Jusan Bank. Specifically، the company had pledged its assets when taking out loans from CesnaBank (later Jusan Bank، now Alatau City Bank).

Data presented by the Oskemen city prosecutor revealed that by the end of 2024، the debt owed by enterprises under the Asia Auto group to the state exceeded 180 billion tenge. In 2025، the debt to "Zhasyl Damu" was identified as 65 billion tenge، and the debt to Alatau City Bank stood at 47.6 billion tenge.

In 2025، the Specialized Interdistrict Economic Court of the East Kazakhstan region did not accept the state revenue authority's application to declare Asia Auto bankrupt، citing a tax debt of 807.3 million tenge.

Proposal for Plant Revitalization

Earlier، in December 2025، Member of Parliament Serik Yerubayev proposed to Prime Minister Olzhas Bektenov the utilization of the Asia Auto plant's infrastructure for the production of cars and agricultural machinery. Yerubayev highlighted that Kazakhstan's attempts to establish its own automotive industry since independence have often ended unsuccessfully.

Over the years، Asia Auto received significant state support، including 361 billion tenge in tax incentives، customs preferences، and industrial subsidies. Despite this، the company reportedly focused on "screwdriver assembly" rather than establishing full-scale automotive production.

Yerubayev suggested learning from this situation for future industrial projects and proposed leveraging the Asia Auto plant's capacity، either by integrating with existing projects like AllurAuto and Hyundai Trans Kazakhstan or for manufacturing agricultural equipment.

Closure of Asia Auto

Several years ago، the Ministry of Industry and Infrastructure Development (now the Ministry of Industry and Construction) imposed requirements on the Asia Auto group of companies due to insufficient localization of production. The ministry had entered into industrial assembly agreements with Asia Auto and Asia Auto Kazakhstan in 2010 and 2012. These agreements stipulated that the companies would undertake welding and painting of at least one vehicle model starting from 2017 and 2019، respectively.

As the companies failed to meet these obligations، the ministry issued a notice of breach of contract in 2020. Following no response from the companies، the ministry initiated the termination process.

Asia Auto argued that there were no legal grounds for terminating the agreements، claiming that an addendum had extended the deadline for fulfilling obligations to the end of 2020. The company also stated it saw no obstacles to signing a new agreement after December 31، 2020.

The company had announced an investment of $76 million to establish full-cycle production capacity، with plans to launch a project to produce 50،000 vehicles annually in 2021. The project's implementation was delayed due to the pandemic's impact.

On August 12، 2020، the Specialized Interdistrict Economic Court of Astana prohibited state bodies from granting Asia Auto companies the benefits and preferences stipulated in the addendum. On August 24، the court declared the addendum invalid and considered the initial agreement breached.

Anatoly Balushkin، the owner of Asia Auto، was ranked 35th on Forbes' list of the wealthiest Kazakhstani citizens at the time، with an estimated fortune of $153 million. He had also acquired Russian citizenship and managed a chain of car dealerships in Russia.

In December 2025، the Prosecutor General's Office of the Republic of Kazakhstan announced that Balushkin، a Russian citizen، would not be extradited to Kazakhstan. This followed a 2025 ruling by an Oskemen court، which sentenced him in absentia to nine years in prison for fraud and causing damages exceeding 174 billion tenge to the state.

This information was reported by the Infohub.kz news agency.