Akanat says Xin Ke Yuan’s factory licences to be permanently revoked

Industry Minister Akanat Promphan announced on Monday that the controversial Xin Ke Yuan Steel Co Ltd’s licences for operating steel factories in Thailand would be permanently revoked, alongside a permanent ban on its use of induction furnace (IF) technology.

Legal Violations Lead to Business Shutdown

Akanat explained that Xin Ke Yuan Steel had allegedly committed multiple legal violations and would face an investigation by the Department of Special Investigation (DSI), ending any future business prospects in Thailand.

"I must say that whether Xin Ke Yuan Steel has other projects or not, from now on, it will have no opportunity to open factories or conduct any business here," Akanat said.

Substandard Steel Products Linked to Building Collapse

Xin Ke Yuan’s factory in Ban Khai district, Rayong province, was temporarily closed after the Industry Ministry found that its steel products were of substandard quality.

The company’s steel was also used in the construction of the collapsed State Audit Office (SAO) building. While the steel may not have been the main cause, it was cited as a contributing factor.

Factory Closures and Further Investigations

Last week, tests on samples taken from the collapsed building failed to meet industry standards, confirming the decision to keep the Ban Khai factory closed. Another Xin Ke Yuan factory in Pluak Daeng district also remains shut after a construction crane accident.

Akanat noted the company had committed numerous violations, including defying ministry orders and breaching the Industrial Works Act, Industrial Standard Act, and Hazardous Substances Control Act.
The Industry Ministry will also ask the Office of the Board of Investment to revoke the firm’s investment privileges.

Xin Ke Yuan Denies Allegations

On 21 April, Xin Ke Yuan Steel rejected the accusations, stating its production processes were ISO 9001 certified and that its steel bars should not be blamed for the SAO building collapse.

Induction Furnace Technology to Be Banned Nationwide

Akanat reaffirmed that the Industry Ministry would push for a Cabinet-approved permanent ban on induction furnace technology. He said the ban process could be fast-tracked to conclude within one month.

Currently, ten steel factories in Thailand use IF technology, with three — Xin Ke Yuan Steel, Chonburi Special Steel Group, and Chow Steel Plc — already ordered to suspend operations.