Xin Ke Yuan Steel denies allegations over substandard steel bars
Chinese company Xin Ke Yuan Steel on Monday denied allegations that its steel bars were substandard, saying that its production processes are certified under the ISO 9001 standard.
During a press conference at the Rama Gardens Hotel in Bangkok’s Lak Si district, the company’s legal representative expressed condolences over the collapse of the State Audit Office (SAO) building in the city’s Chatuchak district, which was caused by the earthquake on March 28.
The company stated it has been unfairly targeted by public speculation suggesting that its steel was the primary cause of the collapse, particularly due to the "SKY" marking found on steel bars used in the building’s construction.
It maintains that the true cause of the collapse will gradually come to light, asserting that other factors—such as the construction plans, the supervising engineer, or specification changes—are more likely responsible.
Xin Ke Yuan Steel reiterated that its steel products are ISO 9001 certified and meet the Board of Investment (BOI) regulations. The company also rejected claims that it is a grey Chinese company that evades taxes, disclosing that it paid a total of 856 million baht in corporate income tax between 2019 and 2023.
In addition to its tax contributions, the company highlighted its support for Thai society, noting that it donated over 20 million face masks during the Covid-19 pandemic.
“The company urges the government to thoroughly investigate those responsible for spreading false rumours—whether regarding the Chinese grey affiliation or claims of substandard steel—as these rumours have caused significant reputational and financial harm,” said the company’s representative.
“The company sells steel solely through authorised distributors and ensures product inspections are routinely conducted.”
Piyapong Kongmaluan, a lawyer representing Xin Ke Yuan Steel, said the company would soon clarify its steel standards and factory operations in Ban Khai district, Rayong, to the Industry Ministry.
He explained that the factory had been ordered to close in late December last year due to a gas explosion incident and environmental impacts from the production process. The ministry subsequently inspected the steel and found it failed to meet required standards, leading to the closure order, he added.
Piyapong stated that Xin Ke Yuan Steel is reviewing the details surrounding the revocation of its BOI privileges for non-compliance with directives from the Department of Industrial Works. He noted that several benefits are involved, including tax incentives that have already expired, as well as machinery and employment-related privileges.
He further said the company intends to appeal the BOI’s revocation decision within the 30-day timeframe, starting from the date of the order issued last week.
Although the factory has been suspended under the order from the Department of Industrial Works, the company continues to employ staff as usual. He emphasised that the closure only affects the Ban Khai facility.
He added that Xin Ke Yuan Steel has scheduled a meeting to provide further information and is currently awaiting the order to reopen the factory.
Regarding the company’s future business plans, Piyapong said the management team is consulting with shareholders on how to continue operations in Thailand, as the incident has severely impacted the company.
Another lawyer, Surasak Weerakul, denied allegations that 25mm and 32mm steel bars had twice failed to meet standard criteria. He argued that the inspection should be carried out by the Thailand Automotive Institute, which is equipped with tools to measure boron values according to the required standards.
Addressing concerns about the induction furnace, the company confirmed it is a modern, environmentally friendly model. Surasak also denied rumours that the company had spent 300 million baht lobbying officials to pass inspections.
Surasak affirmed Xin Ke Yuan Steel’s readiness to cooperate with government authorities in identifying those responsible for spreading such rumours.
“The company seeks fair treatment, especially as the cause of the SAO building collapse has yet to be conclusively determined,” he said. He also reaffirmed the company’s commitment to operating in line with good governance and international standards.
