Such steel is popular among contractors and construction companies who prefer to buy cheap materials from the mill Wai Wing Co, which is owned by Taiwanese businessman Kevin Lor.
The registered mill allegedly produces steel from scrap metal bought from dealers or scavengers, according to secretary-general Chaiyong Krittiphol. However, he said, the plant could not be immediately forced to close before the case is considered and approved by the Department of Industrial Works.
A recent raid on the mill by the Department of Special Investigation (DSI) found nothing suspicious at first, but after a thorough search of the 15-rai compound, agents allegedly found a walled-in facility that was blocked by several trucks.
Upon entering the facility, they claim that they found more than 100 tonnes of steel rods – 133,600 in total and worth Bt27 million – made of scrap metal ready for shipment. A TISI test later found the rods broke easily, failing a standard test for construction materials.
Interviewed by DSI, Lor said his plant produced standard steel rods but had trouble selling them. Contractors and construction firms preferred the cheaper substandard steel, prompting him to turn to scrap metal products.
The DSI also inspected two other steel mills in the province but found nothing illegal. There are allegedly 18 mills producing cheap steel in Thailand under DSI’s watch, he said.