Xin Ke Yuan Steel was among 12 companies in Thailand producing steel using Induction Furnace (IF), a method banned in China a decade ago due to its impact on air quality.
The company is suspected of contributing to the collapse of the State Audit Office building in Bangkok following last Friday’s earthquake.
An inspection by the Iron and Steel Institute of Thailand on Monday found that the company’s 32mm and 20mm deformed steel bars, used in the building’s construction, failed to meet safety standards.
The Industry Ministry previously ordered the closure of Xin Ke Yuan Steel’s factory in Rayong province in December last year due to substandard steel production. Authorities are investigating whether the factory has violated this closure order.
Industry Minister Akanat Promphan acknowledged that Xin Ke Yuan Steel has operated in Thailand for a long time and has received investment support from the Board of Investment (BOI). He reaffirmed the ministry’s commitment to regulating foreign businesses that do not benefit the country while promoting the growth of Thai manufacturers.
“We have already inspected and shut down seven steel factories and are currently investigating three more, valued at 400 million baht,” he said, adding that some factory operators have attempted to lobby and intimidate officials.
Akanat, a BOI member, stated that revoking investment incentives for such foreign businesses is appropriate but requires careful consideration.
He confirmed that the ministry will reinspect Xin Ke Yuan Steel’s factory to ensure that confiscated steel is not being sold. If even one confiscated item is found on the market, immediate penalties will be imposed.
He also clarified that this ongoing inspection is unrelated to the collapse of the State Audit Office building, as the structure was built before the factory’s closure.
Akanat emphasised that revoking TIS certification must follow due process, starting with confiscation and closure. If companies continue to produce substandard steel despite warnings, legal action will be taken.
Steel manufacturers in Thailand using IFs:
1. BNSS Steel Group, Chonburi
2. Chonburi Special Steel Group, Chonburi
3. Xin Ke Yuan Steel, Rayong
4. AB Steel, Sa Kaeo
5. Ling Nan Steel, Nakhon Pathom
6. Chow Steel, Prachin Buri
7. Thaixing Steel, Prachin Buri
8. TSB Steel, Prachin Buri
9. Singha Thai Steel, Prachin Buri
10. KPP Steel, Prachin Buri
11. Thai Heng Steel, Phetchaburi
12. Tongpao Steel, Nakhon Ratchasima
Sources from The Nation [https://lnkd.in/dMRWgj5D]
