Xin Ke Yuan sues former minister and state agencies for 3.2 billion baht in damages

Xin Ke Yuan Steel has filed a lawsuit against former Industry Minister Akanat Promphan and other state agencies, demanding compensation for damages amounting to 3.2 billion baht and seeking permission to reopen its factory.

The lawsuit was submitted to the Rayong Administrative Court on September 19, in response to an order from the Department of Industrial Works that temporarily shut down the company's steel plant.

The dispute began when Akanat instructed the department to close Xin Ke Yuan’s factory following complaints from local residents and organisations about potential environmental and community impacts. 

These complaints cited concerns about air pollution, noise, and safety risks associated with the factory's operations. This led to an official investigation by state agencies and, ultimately, the shutdown order, along with the seizure of steel stockpiles held by the company.

However, the case gained greater significance when the steel produced by Xin Ke Yuan was linked to the construction of the State Audit Office (SAO) building in Bangkok's Chatuchak district, which collapsed earlier this year.

While the collapse was attributed to multiple factors, including design flaws and material quality, Xin Ke Yuan's steel came under scrutiny, resulting in increased regulatory oversight.

In its lawsuit, Xin Ke Yuan seeks to have the Department of Industrial Works' shutdown order revoked and compensation for the losses incurred due to the suspension of its operations. 

The company has claimed a total of 3.21 billion baht in damages from Akanat and 16 other individuals, including 3.14 billion baht for lost revenue and business opportunities, as well as 77.28 million baht in wages for employees during the shutdown period.

Additionally, the company is seeking interest at a rate of 5% per annum on the total damages until full payment is made.

Xin Ke Yuan has also requested the court to issue an interim order to suspend the Department of Industrial Works' directive while the case is under review, allowing the company to resume operations until a final ruling is made.

In a separate legal action on the same day, Xin Ke Yuan filed another lawsuit against the Board of Investment (BOI), its Secretary General Narit Therdsteerasukdi, and Deputy Secretary General Narucha Ruchuphan. 

The company is seeking the annulment of a temporary decision by the BOI to revoke its investment benefits. Xin Ke Yuan has requested the court to allow the company to retain its investment rights and privileges during the legal proceedings.