Thai Steel Industry Calls on Ministry to Block Reopening of Safety-Risk Factory

 

Industry groups fear economic damage and safety risks if the Xin Ke Yuan factory is allowed to restart production with unpurified, non-TIS compliant steel.

 

Ten of Thailand's leading steel associations have made a joint appeal to the Ministry of Industry, demanding it block the reopening of a factory previously shut down for producing sub-standard concrete reinforcing steel (rebar).

 

The industry groups warn that re-licensing the facility, reportedly Xin Ke Yuan, poses a severe risk to both the national economy and public safety, threatening the structural integrity of buildings.

 

Nava Chantanasurakon, vice president of the Federation of Thai Industries (FTI) and coordinator for the collective, submitted the official letter to the Industry Minister on Friday.

 

The letter addresses the consideration of re-licensing a rebar producer that was previously ordered to close temporarily.

The core of the dispute stems from the production methods used by the suspended factory.

 

Ministry inspections revealed the factory was using an Induction Furnace (IF) melting process, a technology deemed unsuitable for producing quality rebar without a necessary purification step.

 

The associations explained that IF furnaces lack the oxidation and slag formation systems required to eliminate critical contaminants such as phosphorus, sulphur, and boron found in scrap metal.

 

This deficiency makes it extremely difficult to control the steel's chemical properties and meet the Thai Industrial Standards (TIS) requirements.
 

 

While proper producers would mitigate this by using a Ladle Furnace for purification, the inspectors found that most of the suspended factories either lacked this equipment entirely or did not use it consistently.

 

Past failures by some producers to control chemical components—specifically boron levels—confirm this technical shortcoming.

 

The 10 associations expressed profound concern that permitting the factories to resume their previous non-compliant practices would see substandard rebar flood the market, creating two major problems:

 

Public Safety Risk: The failure to meet TIS standards directly compromises the stability and strength of building structures, putting the safety and property of the public at direct risk.

 

Unfair Competition: Non-compliant manufacturers gain an unfair cost advantage over businesses that invest in the necessary equipment and procedures to adhere strictly to TIS requirements.

 

To ensure confidence in the market, the associations are requesting the Ministry of Industry impose stringent preconditions for any re-licensing approval:

Strict TIS Compliance: Factories must strictly and fully comply with all material and chemical composition requirements outlined in TIS 20-2559 and TIS 24-2559, particularly Clauses 5.2 to 5.5, which detail the need for a comprehensive refining process.

 

Mandatory Ladle Furnace Use: Factories must confirm that a Ladle Furnace is used for every heat of production to guarantee steel purity.

 

Transparency and Oversight: The associations urge the integration of efforts between the Department of Industrial Works and the Thai Industrial Standards Institute (TISI) to verify the process. They also demand that all inspection results and the production supervision plan be transparently disclosed to the public before any factory is allowed to reopen.