April 24, 2025
BANGKOK – A special taskforce from the Ministry of Industry has discovered that a steel factory, jointly owned by a Chinese firm, violated a suspension order and resumed the production of substandard steel bars.
The taskforce, headed by Thitipat Chotidechachainan, inspected the Chonburi Special Steel Group factory in Tambon Nong Kham, Si Racha district, Chonburi, following tip-offs from local residents that the factory had resumed operations despite the ministry’s ban.
The inspection team included officials from various agencies, including the Consumer Protection Police Division, the Thai Industrial Standards Institute (TISI), and the Department of Industrial Works.
Factory Previously Cited for Substandard Production
Thitipat, who serves as chief of staff to Industry Minister Akanat Promphan, said the taskforce had previously inspected the factory in February and seized substandard steel bars worth 23 million baht as evidence.The factory was found to be using induction furnace (IF) technology, an outdated method that results in inconsistent steel quality. As a result, the Ministry of Industry ordered the factory to suspend operations until improvements were made and a new operating licence was obtained.
Thitipat noted that the ministry is currently seeking Cabinet approval to ban the use of IF technology in Thailand due to its inability to meet national standards.
Factory Caught Operating Illegally
Despite the suspension, the factory was found to have resumed operations when the taskforce returned on Wednesday morning. Authorities discovered that 582 tonnes of newly produced steel bars, worth approximately 11.53 million baht, had been manufactured in violation of the order.
The taskforce seized the new batch of steel bars and will request the Department of Special Investigation (DSI) to take legal action against both Chonburi Special Steel Group and its shareholder, Teng Feng Steel Co. Ltd.
Legal Action and Further Violations
Thitipat said Chonburi Special Steel Group will be charged with:
- Violating the suspension order issued by the Department of Industrial Works
- Expanding the factory without permission
- Collaborating in the sale of uncertified steel bars
Teng Feng Steel will face charges for:
- Producing steel products without permission
- Unlawfully using the TISI certification mark
- Possessing and selling steel bars without proper authorisation
Illegal Foreign Workers Detained
During the raid, six Chinese nationals were found working at the factory without valid work permits. They were arrested and handed over to immigration authorities for visa revocation and deportation.