BOI temporarily revokes investment privileges of Chinese steel firm

The Board of Investment (BOI) temporarily revoked investment privileges for the Chinese firm Xin Ke Yuan Steel on Friday, in response to the Industry Ministry’s claim that the company supplied substandard steel.

The Rayong-based firm is currently under investigation for its potential involvement in the collapse of the State Audit Office (SAO) building in Bangkok following the earthquake on March 28.

Test results from the Iron and Steel Institute of Thailand revealed that the company’s 32mm and 20mm deformed steel bars, which were used in the construction of the building, failed to meet safety standards.

BOI secretary-general Narit Therdsteerasukdi stated that this action is in accordance with a letter from Industry Minister Akanat Promphan, which indicated that the company is not in compliance with the Factory Act and the Industrial Product Standards Act.

The board, chaired by Finance Minister Pichai Chunhavajira, resolved to temporarily revoke investment privileges related to the manufacturing of steel bars until the Industry Ministry permits the Chinese company to resume operations.

If the Industry Ministry revokes Xin Ke Yuan Steel’s factory operation certificate, the BOI will take further measures to prevent any potential damage during the ongoing investigation, Narit said, adding that the board has gathered evidence at the company's site and has been in discussion with the Industry Ministry since April 1.

Narit further noted that the BOI has not promoted investment in steel bars for construction since 2000. Regarding other steel products, the board has been working closely with the domestic steel industry to address oversupply and dumping concerns.

Last year, the BOI cancelled promotional privileges for various types of steel production, such as steel bars, steel wire and hot-rolled steel sheets—products significantly impacted by intense market competition.

In addition, the privileges for flat and long steel production businesses have been reduced to non-tax incentives only, in an effort to protect the Thai steel industry and enhance competitiveness for domestic entrepreneurs, he added.

Evidence collection underway

The Thai Industrial Standards Institute (TISI), the Department of Special Investigation (DSI), and other relevant agencies have collected additional samples from the debris of the SAO building, focusing on structural components.

Steel samples will be sent to the Iron and Steel Institute of Thailand for inspection. Concrete samples, including remnants of pillars and flooring, will undergo detailed analysis at King Mongkut’s Institute of Technology Ladkrabang.

Pol Colonel Thitipong Piwatwuttikul, deputy chief of Metropolitan Police Division 2, said the concrete inspection is expected to be completed swiftly, which should support the police investigation.

Meanwhile, DSI spokesperson Pol Major Woranan Srilam stated that officials are collecting evidence from different zones to prevent overlap among agencies. Forensic scientists will assist in documenting various pieces of evidence, he added.