Experts question steel plant's reopening

The Thai government's decision to permit Xin Ke Yuan Steel, a Chinese firm operating locally, to restart its operations has ignited fresh concerns among experts regarding public safety and the adequacy of regulations for steel produced using induction furnace (IF) technology.

Xin Ke Yuan Steel had been closed for more than 18 months following accusations of producing substandard steel products. This closure stemmed from regulatory, safety, and environmental violations. The company was cleared to resume operations on June 5 after authorities determined it had met the conditions for reopening.

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The government, however, insists the reopening was required under existing law after the company addressed deficiencies identified by regulators and met the necessary standards.

However, the government maintains that the reopening was legally mandated after the company addressed identified deficiencies and met required standards. Industry Minister Varawut Silpa-archa has promised more frequent inspections and mandated ladle refining furnaces for IF-based steelmakers to enhance quality control, warning that production could be suspended again if violations are found.

Despite these assurances, prominent critics like Prof. Amorn Pimanmas, president of the Thailand Structural Engineers Association, are calling for stricter oversight, separate technical standards, and clearer product identification for IF-produced steel. He argues that IF technology can lead to quality inconsistencies, especially when using recycled scrap metal and insufficient secondary refining. Concerns are particularly high for its use in critical structures, high-rise buildings, and seismically active areas, especially after the March 2025 earthquake that caused the collapse of the 30-story State Audit Office building, resulting in nearly 100 fatalities.

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He argues steel produced through induction furnace technology may be more vulnerable to quality inconsistencies if manufacturing controls are inadequate, particularly when recycled scrap metal is used as feedstock and secondary refining processes are insufficient.