Steel firm faces axe over Bangkok quake collapse
A steel manufacturer under fire for producing substandard materials linked to the collapse of a Bangkok government building is now facing the axe—Industry Minister Akanat Promphan demands that their investment privileges be revoked.
In a fiery Facebook post yesterday, April 4, Akanat announced he had signed a letter seeking the removal of benefits granted to Xin Ke Yuan Steel, accusing the firm of flouting Thai industrial regulations.
“Xin Ke Yuan Steel does not comply with the Factory Act and the Industrial Product Standards Act,” Akanat wrote, adding that efforts to revoke the company’s privileges have not been hindered by the Industry Ministry.
Rumours that the revocation process was stalled due to ministerial interference were “not true,” the industry minister insisted. “My team has been instructed to investigate the matter thoroughly.”
The steel supplier is under scrutiny following the partial collapse of the State Audit Office building in Bangkok during the March 28 earthquake. Investigators have linked the building’s failure to substandard steel bars—specifically 32mm and 20mm deformed bars—supplied by Xin Ke Yuan.
Tests conducted by the Iron and Steel Institute of Thailand confirmed that the bars used in the construction failed to meet safety standards. This revelation sparked public outrage and prompted immediate scrutiny of the company’s operations.
However, the push to revoke Xin Ke Yuan’s privileges hit a bureaucratic snag. During a special meeting of Thailand’s Board of Investment (BOI), officials raised concerns over a certification document issued by the Thai Industrial Standards Institute (TISI), which allegedly verifies the quality of the company’s products, reported The Nation.
The TISI certificate has thrown the process into legal limbo, with officials warning that a rushed revocation could spark lawsuits or hefty compensation demands—parallels being drawn to the contentious Akara gold mine case.
Akanat also confirmed that two warning letters were issued to the company—on December 27 last year and February 20 —urging it to improve product standards.
“The quality has yet to be improved.”
As pressure mounts, the public is watching closely to see whether the government will stand firm or buckle under the weight of red tape and legal threats.
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