Xin Ke Yuan Steel, the producer of deformed bar used in the SAO building

Industry Minister Akanat Promphan, along with his team, inspected the site and collected six types of steel samples, mostly from a single manufacturer. These samples are currently being tested at the Thai Iron and Steel Institute, with results expected today.

In a statement on March 31, Akanat said that if any manufacturer is found responsible for substandard steel, their factory will be immediately shut down, their industrial standard certification revoked, and their steel recalled. Legal action will also be taken.

Reports indicate that the steel used in the collapsed SAO building, as seen in media images, was supplied by Xin Ke Yuan Steel Co., Ltd., a manufacturer of deformed bars. Late last year, Industry Minister Akanat Promphan sent a team to inspect a fire incident at the company's factory in Ban Khai, Rayong, uncovering multiple safety and environmental violations.

The inspection also revealed that the steel produced failed to meet quality standards, particularly in strength, leading authorities to seize all stock and collect samples for testing. The results confirmed that the steel did not meet critical standards, directly impacting its structural integrity. As a result, officials ordered the seizure of 2,441 tons of substandard steel, valued at approximately 49.2 million baht, and initiated legal proceedings against the company.

A search of the Department of Business Development records reveals that Xin Ke Yuan Steel Co., Ltd. is majority-owned by Chinese nationals, with a significant number of minor shareholders also of Chinese nationality.

The company was registered on February 23, 2011, with a current capital of 1.53 billion baht. It operates a steel manufacturing plant at Nong Lalok, Ban Khai, Rayong. The board consists of three directors: Jianqi Chen, Su Longchen, and Somphan Pankaew.

As of the latest shareholder report submitted on April 30, 2024, Jianqi Chen holds the largest stake at 64.91%.

The company’s 2023 financial statements report total assets of 8.63 billion baht, liabilities of 2.69 billion baht, total revenue of 16.32 billion baht, expenses of 15.37 billion baht, interest payments of 54.14 million baht, corporate tax of 131.92 million baht, and a net profit of 772.32 million baht.

Xin Ke Yuan Steel has one affiliated company, Xin Ke Yuan Co., Ltd., which was registered on July 19, 2019, with a current capital of 6 billion baht. The company specializes in manufacturing basic iron and steel products and is located at 666 Moo 2, Ta Sit, Pluak Daeng, Rayong.

The company’s board consists of three directors: Su Longchen, Lenzhong Chen, and Somphan Pangkaew.

As of the latest shareholder report submitted in January 2025, Jianqi Chen (Chinese nationality) holds the largest stake at 73.63%.

The company’s 2023 financial statements report total assets of 14.89 billion baht, liabilities of 9.20 billion baht, total revenue of 320.80 million baht, total expenses of 86.47 million baht, and a net profit of 234.33 million baht.

Jianqi Chen, the majority shareholder of Xin Ke Yuan Group, serves as a director in at least three other companies:

Xin Shao Yuan Co., Ltd. – Specializing in the manufacture of basic iron and steel.

Zhenhua International Tourism and Trading Co., Ltd. – Engaged in the sale of cigars and alcoholic beverages.

Thai Inter Steel Co., Ltd. – Previously dissolved.

Additionally, Chen holds shares in at least four other companies:

Asia Step (Thailand) Co., Ltd. – A lingerie manufacturing contractor (35.39% stake).

Xin Shao Yuan Co., Ltd. – A steel manufacturer (48% stake).

Xin Ke Yuan Co., Ltd. – A steel manufacturer (71.26% stake).

Xin Ke Yuan Steel Co., Ltd. – A steel production plant (64.91% stake).

However, Xin Ke Yuan Steel Co., Ltd. and its affiliates have not yet been formally accused of using substandard deformed bars in the SAO building construction. The matter remains under investigation by multiple government agencies, and conclusions are still pending.