A steel factory in Chonburi, a province in Thailand, jointly owned by a Chinese firm, has been caught illegally resuming operations [1] despite a government-issued suspension order. A special taskforce from Thailand’s Ministry of Industry discovered the violation during an inspection, resulting in the seizure of 582 tonnes of substandard steel bars worth approximately 11.53 million baht.
Led by Thitipat Chotidechachainan, the taskforce inspected Chonburi Special Steel Group’s facility in Tambon Nong Kham, Si Racha district, following reports from local residents who alleged the factory had resumed production despite regulatory restrictions. Officials arrived at the site, uncovering clear evidence that operations had restarted in defiance of the ministry’s ban.
The inspection involved officials from multiple agencies, including the Consumer Protection Police Division, the Thai Industrial Standards Institute (TISI), and the Department of Industrial Works. Their investigation confirmed that the factory continued manufacturing substandard steel bars, posing potential risks to construction and infrastructure projects that rely on quality materials.
The factory was discovered using induction furnace (IF) technology, an outdated process known for producing steel with inconsistent quality. Consequently, the Ministry of Industry mandated the suspension of its operations until necessary upgrades were implemented and a new operating license was secured.
Thitipat emphasized that the ministry is currently seeking Cabinet approval to prohibit IF technology in Thailand, citing its failure to comply with national standards.
Authorities swiftly moved to seize the illegally produced steel and warned that legal action would be taken against those responsible. Thitipat emphasized that regulatory enforcement is essential to maintaining industry standards and ensuring consumer safety.
Residents had initially raised concerns over the factory’s activities, prompting the ministry to act. The unauthorized production of low-quality steel has raised alarms within Thailand’s steel sector, as substandard materials could lead to structural weaknesses and safety hazards.
The Ministry of Industry has reaffirmed its commitment to monitoring compliance and preventing further violations. Officials are expected to conduct additional inspections to ensure adherence to regulations and prevent similar incidents.
Sources:
[1] Chinese steel factory in Chonburi found violating suspension order https://www.nationthailand.com/news/general/40049142