Chinese motor vehicle dealer Foton East Africa's Assembly plant in Nairobi is set to be shut down after it emerged that it would be auctioned to repay debts.
This is after a public auction notice on Tuesday invited bids for the multi-million company's 10-acre land on Old Mombasa Road.
The notice stated that the company would be sold to an investor who would complete it or rebuild it for commercial uses.
Foton first entered the Kenyan market in 2011 through importing fully built motor vehicles.
The company acquired land to build an assembly plant with a capacity to churn out 10000 vehicles meant for the local and regional market.
Foton had earlier contracted Thika-based Kenya Vehicle Manufacturers (KVM) to assemble its brand while its assembly plant was under construction.
The two companies fell out in 2012 after Foton opted to run a small scale assembly at Mlolongo.
Foton had estimated the entire assembly plant in Nairobi to cost Sh1.2 Billion.
The plant featured a body building area, painting section, a completely knocked down parts area and a vehicle assembly line with cranes.
