Bangkok: The Ministry of Industry has identified ‘Xin Ke Yuan’ as a special case, planning to collaborate with the Department of Special Investigation (DSI) to collect additional steel samples, while closely monitoring a Board of Investment (BOI) meeting that may consider revoking the company’s BOI rights.
According to Thai News Agency, Mr. Pongpol Yodmuangcharoen, Secretary to the Minister of Industry and Spokesperson of the Ministry, along with representatives from the relevant industrial bodies, announced that an inspection revealed substandard steel being used in the construction of the Office of the Auditor General (OAG) building by Xin Ke Yuan Steel Co., Ltd. The inspection found that several rebar samples did not meet industrial standards, prompting the Director-General of the Department of Factories to request DSI to treat Xin Ke Yuan as a special case due to its complexity and economic impact. The investigation also uncovered irregularities in the factory’s water usage, with additional steel sample collection planned for tomorrow at the collapsed OAG building to be analyzed by the Iron and Steel Institute of Thailand.
Previously, the Ministry of Industry asked Xin Ke Yuan Co., Ltd. to provide clarification on steel sales since 2020, particularly concerning the steel lot used in the collapsed State Audit Office building. The company had responded in 2015, denying direct involvement in steel supply to the office and temporarily suspending operations. Despite this, no further information was provided regarding 40,000 tons of red dust, which was due today. Consequently, the Ministry intends to use TISI Section 56 law to prosecute the company for withholding information.
Rumors about TISI renewing the company’s TIS license in January 2025 have been dispelled, as the company’s license was suspended for non-compliance with standards. On February 20, 2025, a warning was issued against producing substandard steel bars. Recently, Mr. Ekkanat Promphan, Minister of Industry, convened a meeting with relevant agencies to discuss Xin Ke Yuan and other companies. The investigation revealed that Xin Ke Yuan’s board of directors is linked to four other steel companies, necessitating a detailed investigation. The BOI board is expected to consider suspending and revoking Xin Ke Yuan’s BOI rights tomorrow due to breaches in investment conditions and legal non-compliance.
Historically, the Ministry of Industry has shut down seven steel factories, including four Chinese and three Thai-owned facilities. Future inspections are planned to ensure compliance with steel product standards across all factories. The Minister of Industry is also considering enhancing steel bar standards by transitioning from the outdated Induction Furnace technology to the globally accepted Electric Arc Furnace, which offers higher purity and lower pollution levels.