MP questions steel plant reopening
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Thailand industrial regulatory landscape is under intense scrutiny after United Thai Nation Party (UTN) list-MP Atavit Suwanpakdee demanded the Ministry of Industry revisit its controversial June 5 decision to allow Xin Ke Yuan Steel Co Ltd to resume production following an 18-month suspension. The MP's urgent call, backed by the Thailand Structural Engineers Association (TSEA), centers on critical quality control concerns regarding the company's steel, particularly its reliance on Induction Furnace (IF) technology, and its alleged historical lack of a Ladle Refining Furnace (LRF) — a vital component for impurity removal. This move reopens a contentious chapter, as Xin Ke Yuan's SKY-branded steel was implicated in the March 2025 collapse of an under-construction State Audit Office (SAO) building, sparking widespread public safety fears. The Department of Industrial Works (DIW) had cleared Xin Ke Yuan, a Chinese-backed firm operating in Rayong Province, citing the completion of environmental and operational improvements, including compliance with air emission standards and Thai Industrial Standards (TISI). However, critics argue the DIW assessment prioritised procedural compliance over fundamental product integrity, especially given the inherent limitations of IF technology in processing varied qualities of scrap metal without an LRF to ensure consistent steel quality. This debate unfolds against a backdrop of Thailand broader efforts to modernise its steel sector, phase out outdated IF technology, and meet evolving global environmental standards like the EU's Carbon Border Adjustment Mechanism (CBAM), creating a high-stakes conflict between industrial development and public safety. Industry Minister Warawut Silpa-archa has affirmed the DIW legal authority in approving the reopening but signalled readiness to order another closure if the factory fails future TISI inspections, indicating ongoing regulatory vigilance. With opposition parties poised to raise this issue in the upcoming June 11 Cabinet meeting, the Ministry faces mounting pressure to enhance transparency, potentially by releasing inspection results and detailing stricter oversight mechanisms. The outcome of this challenge will not only determine the operational future of Xin Ke Yuan Steel but also set a crucial precedent for industrial standards, regulatory enforcement, and public confidence in Thailand vital construction sector.