Xin Ke Yuan Steel is back. The Chinese-owned firm linked to the collapsed OAG tower, 7,000 alleged fake tax invoices and hazardous waste stockpiles has won approval to reopen, triggering a political storm as critics demand answers over one of Thailand’s most controversial manufacturers.
A Chinese-owned steel manufacturer linked to the catastrophic collapse of Bangkok’s Office of the Attorney-General tower, more than 7,000 allegedly fake tax invoices, hazardous industrial waste and a string of regulatory investigations has been given the green light to resume production, reigniting one of Thailand’s most explosive industrial controversies and prompting fresh demands for answers over how Xin Ke Yuan Steel was allowed back into operation after factory raids, licence suspensions, court battles and years of scrutiny over its products and practices.
A Chinese-owned steel manufacturer at the centre of multiple controversies has resumed operations in Rayong after securing approval from the Department of Industrial Works.
The return of Xin Ke Yuan Steel Co., Ltd closes a chapter that included factory closures, licence revocations, environmental investigations and tax-fraud allegations. However, it opens another over transparency, product quality and regulatory oversight.
The company was previously suspended by the Ministry of Industry amid concerns over manufacturing standards. It also faced scrutiny over steel quality, environmental compliance and alleged financial irregularities.
Reopening of controversial Rayong steel producer revives debate over standards and regulatory oversight
Its reopening has now triggered fresh criticism from opposition politicians and steel industry groups.
Industry Minister Varawut Silpa-archa confirmed the development on Monday morning before departing for Vietnam.
Speaking at Military Airport 2 at Wing 6 in Don Mueang, Mr Varawut said the company had completed the required legal procedures. As a result, it was permitted to resume operations under the Factory Act.
According to the minister, amendments to the legislation allowed the company to seek approval to restart production. The factory had previously been ordered to cease operations.
Even so, Mr Varawut acknowledged continuing public concern.
Questions remain among members of the public, industry stakeholders and steel trade groups. Consequently, the minister ordered the Permanent Secretary of the Ministry of Industry to provide a detailed explanation of the reopening process.
Minister orders detailed explanation as steel associations continue questioning reopening process
That clarification is expected to address concerns raised by ten steel trade associations.
Mr Varawut also moved to reassure consumers regarding steel safety.
In parallel, he instructed ministry officials to accelerate measures aimed at strengthening public confidence. Those measures apply regardless of the production technology being used.
After returning from Vietnam, he said he would review progress and seek further updates from officials.
The reopening comes after more than a year of intense scrutiny.
Xin Ke Yuan’s name became nationally known following the collapse of the Office of the Attorney-General building in Bangkok on March 28 last year.
The building was still under construction when it collapsed.
Notably, the disaster occurred during an earthquake originating in Myanmar. The quake caused significant disruption across Bangkok.
OAG building collapse during Myanmar quake placed Xin Ke Yuan steel under intense national scrutiny
Images of the collapse quickly spread worldwide. Subsequently, investigators began examining materials used in the project.
Among them was steel supplied by Xin Ke Yuan.
That discovery placed the manufacturer at the centre of investigations into construction materials and quality standards.
Yet the company’s difficulties began well before the building collapse.
Earlier investigations had already focused on operations at the Rayong factory. Authorities raided the facility and seized products amid concerns over standards.
At the same time, Thai-owned steel producers repeatedly warned government agencies about the company’s operations.
Those warnings increased pressure on regulators to act.
Fake invoice allegations and hazardous waste findings widened scrutiny beyond steel quality concerns
Separately, investigators uncovered alleged tax-related irregularities.
According to official findings, more than 7,000 allegedly fake tax invoices were discovered. The scale of the case attracted the attention of the Department of Special Investigation.
The matter soon expanded beyond industrial regulation.
Instead, it became a broader investigation involving corporate compliance and taxation issues.
On another front, environmental concerns also emerged. Authorities reported that large quantities of undeclared industrial dust had been stored at the factory. Officials described the material as hazardous industrial waste. Reports indicated that tens of thousands of tonnes were involved.
Those findings intensified scrutiny of the company. In response, the Ministry of Industry escalated enforcement measures.
Operations were suspended and factory licences were targeted for revocation. Authorities also moved against the induction furnace technology used by the company. Officials cited industrial safety concerns and the need to protect public confidence.
Throughout the controversy, Xin Ke Yuan denied wrongdoing. The company consistently rejected allegations regarding its operations and products. The dispute later moved into the courts.
Xin Ke Yuan filed legal action against former Industry Minister Akanat Promphan and government agencies. The company sought damages totalling 3.21 billion baht. Despite the litigation, official investigations continued.
Opposition demands answers as reopening decision becomes a politically contentious national issue
Meanwhile, regulators maintained scrutiny of projects linked to the company’s products.
Against that backdrop, the decision to permit production to resume has become politically contentious. The strongest criticism has come from the opposition Kla Tham Party.
On Sunday, June 7, deputy spokesperson Peerawas Somwong demanded fuller disclosure surrounding the reopening. He argued that government agencies must provide a detailed explanation to the public.
Moreover, he said the issue should not be resolved quietly behind government office doors. Mr Peerawas questioned whether passing emissions tests was enough to restore confidence.
He noted that successful trial runs represented only an initial legal requirement. They did not answer broader concerns surrounding steel quality.
Nor, he argued, did they resolve questions linked to the company’s history.
That history includes standards disputes, factory raids and product seizures.
For that reason, Mr Peerawas said public concern remains justified.
Kla Tham rejects claims standards alone answer public concerns over steel quality and safety
He also criticised the use of the phrase “meeting standards” without supporting evidence.
“Don’t use the term ‘meeting the standards’ as a cover-up for all problems. The public isn’t just asking if the chimney passes the inspection; they’re asking if the steel coming out of this factory is truly safe, truly strong, and whether it will not again pose a risk to homes, schools, hospitals, or public buildings,” Mr Peerawas said.
His criticism focused on the distinction between environmental compliance and product quality. Passing pollution tests, he argued, does not automatically answer questions about structural safety.
As part of this, he demanded details regarding future inspections. He questioned how random testing would be conducted once commercial production resumed.
He also asked which agencies would perform inspections and what standards would be applied. Equally important, he sought assurances that inspection results would be released publicly.
The opposition has also called for the publication of testing reports and quality-control records. In addition, it wants disclosure of post-reopening inspection plans.
Opposition seeks disclosure of inspection reports, safeguards and future oversight arrangements
It is also seeking details regarding measures designed to prevent substandard steel from entering the market.
Beyond that, the party wants agencies to explain their responsibilities should problems emerge again.
Mr Peerawas further challenged the government on transparency.
“If the government is confident that it’s safe, then they must release the information. Don’t act like the public has no right to know. Don’t act like the issue of steel is a matter for factories and a few government officials, because on the day the building collapses, on the day lives are lost, the ones who suffer are not the ones who signed the documents, but the people.”
The opposition politician also called for independent experts to review inspection results.
He argued that public access to information would strengthen confidence in the oversight process.
The Kla Tham Party insists the issue extends beyond one factory.
“The Kla Tham Party, as the opposition, is not against businesses that operate legally, but we cannot accept it if the government adopts a strategy of closing the doors of inspection, silencing questions, and allowing operations to continue without sufficiently building public confidence. This is not just a business issue; it’s about public safety and the credibility of Thailand’s industrial regulatory system,” said Mr Peerawas.
Party says reopening tests transparency and credibility of Thailand’s industrial oversight system
The Kla Tham Party spokesman continued by calling for disclosure of all relevant information. The opposition wants steel inspection results, test reports and quality-control procedures released publicly.
It also seeks details of future random inspections and safeguards against substandard products. Mr Peerawas framed the issue as a test of government transparency.
“The question is very simple: Does the government dare to release all the test results? Does it dare to have independent experts re-examine them? Does it dare to let the public see the oversight process? If it dares, then release them. But if it doesn’t dare, then don’t be angry if the public suspects there’s something being hidden.”
The Department of Industrial Works has defended its decision.
According to officials, the company was ordered to correct seven major environmental and operational deficiencies. Particular attention focused on air-pollution control systems.
Following those upgrades, inspectors returned to the facility.
Laboratory testing was then conducted on emissions samples collected from the plant.
Officials reported that contaminant levels complied with Ministry of Industry standards.
Accordingly, the Department of Industrial Works authorised the company to resume production.
Department defends approval after environmental upgrades, emissions testing and regulatory review
That approval allowed steel manufacturing lines to restart after the prolonged shutdown.
Nevertheless, critics continue to focus on steel quality rather than emissions performance. That distinction now sits at the centre of the dispute.
Government agencies maintain that legal requirements were satisfied before approval was granted. Opposition politicians continue demanding broader disclosure. Industry groups remain sceptical.
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As scrutiny intensifies again, pressure is building on the Ministry of Industry to provide fuller explanations.
For now, Xin Ke Yuan Steel has returned to production. However, the debate surrounding the company is far from settled.
Instead, attention is shifting towards inspections, oversight and the evidence behind one of Thailand’s most controversial industrial decisions.
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