A Chinese steel firm linked to the deadly Chatuchak building collapse is under fire as officials launch probes into radioactive waste and tax fraud. The Industry Minister has revoked its BOI privileges, while the Revenue Department filed a billion-baht fraud case.
A troubled Chinese steel firm has found itself under fire on all fronts in recent days. On Friday, Minister of Industry Akanat Prompan revoked the Board of Investment (BOI) privileges of Xin Ke Yuan Steel Co., Ltd. This came at the same time that the Revenue Department filed a criminal complaint under the Revenue Code with the Department of Special Investigation (DSI). This was in relation to alleged bogus invoices to create tax credits. Meanwhile, the DSI is now investigating the firm on a number of fronts, not least its supply of steel to the collapsed Chatuchak Auditor General’s Building, which could have cost up to 100 lives. It was among the companies passed on to the special police agency last week by Minister of Commerce Pichai Naripthaphan.
A Chinese steel firm established in the kingdom in 2011 is facing a crisis after the Minister of Industry, Akanat Promphan, signed an order on Friday cancelling its Board of Investment (BOI) privileges.
The firm has been linked to the China Railway Group (CREC), and its steel was identified at the collapsed Auditor General’s Building after it collapsed on Friday, March 28.
Previously, Xin Ke Yuan Steel Co., Ltd, was established in Thailand fourteen years ago with an investment of ฿1.53 billion. The firm announced an expansion to its large steel mill in Rayong in 2024.
Minister confirms on Facebook the BOI privileges were revoked due to legal violations and poor compliance
On April 4, 2025, Minister of Industry Akanat Promphan posted on his official Facebook page “Akanat Promphan (Khing)” confirming that he had signed the order to revoke the company’s BOI privileges.
He stated: “Today, I signed a letter requesting the revocation of investment privileges (BOI) because it was found that Xin Ke Yuan Steel Co., Ltd. did not comply with the Factory Act and the Industrial Product Standards Act.”
On Friday, Mr. Akanat revealed that he had written to the firm in December last year and subsequently on February 20th. This was regarding substandard steel being produced by the plant.
Whereas the first notification letter to improve the product to meet the standards was issued on December 27, 2024, and the second letter followed on February 20, 2025, the minister emphasised that the orders remained effective due to the company’s failure to undertake any product improvement.
Factory found in breach of quality standards despite prior warnings and seizure of defective steel
He further explained that the company was warned about deficiencies in its quality control system and was found to be producing goods that did not meet the standards of the Thai Industrial Standards Institute (TISI).
Consequently, on Friday, he signed the order revoking the firm’s privileges. The minister did this under the Factory Act of 1992 and 2019. In addition, the Industrial Standards Act of 1968.
Before an extended plant in Rayong was commissioned, industry representatives urged the government to investigate it. It was inspected, for instance, in December last year, and substandard steel was found. Indeed, a reported ฿45 million worth of product that failed to pass industry standards tests was seized.
In December, the inspection of the Rayong plant occurred after a fire with complaints afterwards filed with officials. This resulted in the beginning of ministerial action, which Minister Akanat signed on Friday, April 4th.
Inspection uncovers caesium-137 stockpiles in excess of reported levels with a value estimated at ฿1.5 billion
Indeed, the facility was further inspected last week. Afterwards, Mr. Thitiphat Chotidechachainan of the Industry Ministry’s working group revealed that 43,000 tonnes of a radioactive substance, caesium-137, were found. Later, officers calculated the waste material’s bags’ value at ฿1.5 billion.
According to the Department of Industrial Works and the Rayong Provincial Industry Office, these radiocaesium-contaminated materials were seized. In addition, samples were collected for laboratory analysis.
Officials described the toxic powdery waste as heavily contaminated with metals. They emphasised the volume discovered was far greater than the 2,245 tonnes previously reported by the company in 2022.
The company has been given a deadline to explain the presence of the radioactive materials or face the revocation of its waste removal permit.
Minister warns of legal action if origin of hazardous substance not explained as firm denies allegations
“Claims of staff changes as the reason for data discrepancies are a common excuse used by shady businesses,” Ms. Thitiphat declared later. “If the company fails to justify the origins of the substance, it could face legal action. Indeed, the DSI may classify the case as a special investigation to swiftly wrap up the case.”
At the same time, despite an ongoing DSI investigation and minsiterial action, the firm denies its steel is substandard. Indeed, in recent days, it has called a press conference to defend its position.
Certainly, problems for the embattled firm are building. Minister of Commerce, Pichai Naripthaphan, included Xin Ke Yuan Steel Co. in a network of companies that the Department of Special Investigation (DSI) should investigate. This was last week, alongside the collapse of the 30-story building in Chatuchak.
Firm faces revenue probe over ฿200 million in fake invoices to fraudulently claim tax credits from 2015–2017
The Revenue Department has also filed a criminal complaint against Xin Ke Yuan Steel Co. This was for allegedly fabricating invoices worth over ฿200 million between 2015 and 2017. The complaint was received by Deputy DSI Director-General Pol Capt Surawut Rangsai on Friday.
Police Capt Surawut indicated that the total damage could exceed ฿1 billion when penalties are considered. He stated the DSI was now gathering evidence and would summon those involved for questioning.
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The complaint may be merged with a broader special investigation into nominee businesses.
This came following an investigation by the Regional Revenue Office Division 3. It found that the company used 7,426 fake tax invoices to fraudulently claim tax credits.
This constitutes an alleged violation of criminal tax laws under the Revenue Code. Therefore, the case now falls under the DSI’s jurisdiction in accordance with the Special Case Investigation Act.
Afterwards, it was confirmed that the DSI is additionally taking up this case.
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