Thai Authorities Ramp Up Investigation into Xin Ke Yuan Steel Ltd (SKY), Seize Company Servers

The Thai Ministry of Industry, through the Department of Industrial Works (DIW), has escalated its investigation into Xin Ke Yuan (SKY) Steel Ltd. by seizing the company’s servers during a raid at its factory in Ban Khai district, Rayong province. This raid follows the company’s failure to submit key documents regarding its steel production process by the April 10 deadline, raising serious concerns about its compliance with national safety standards.

According to reports from the DIW, the operation was carried out by the “Sud Soi” task force, with the involvement of officials from the Department of Special Investigation (DSI) and the Central Investigation Bureau (CIB). During the raid, investigators discovered that some CCTV cameras in the server room had been switched off, indicating a possible attempt to destroy evidence related to the factory’s operations. Additionally, authorities found approximately 40 migrant workers on-site, prompting further investigations into potential violations of labor laws.

The company is under scrutiny for its possible involvement in the collapse of the State Audit Office (SAO) building in Bangkok’s Chatuchak district following an earthquake on March 28. Test results from the Iron and Steel Institute of Thailand indicated that the deformed steel bars used in the construction of the SAO building—specifically, 32mm and 20mm bars from Xin Ke Yuan—did not meet safety standards. However, the company has contested these findings, and the investigation is ongoing.

Industry Minister Akanat Promphan confirmed the seriousness of the situation, explaining that the probe will also examine the whereabouts of 2,441 tonnes of steel, valued at 50.1 million baht, which were seized by the Ministry of Industry on January 9. These materials were part of a larger seizure after the company’s factory was shut down in December 2024 due to the production of substandard steel.

Additionally, officials are reviewing discrepancies found in the factory’s utility bills, which raise further questions about its operations. Investigators are also preparing to collect more steel samples from the SAO collapse site to support the ongoing inquiry.

As public concerns about the safety of construction materials continue to grow, the Ministry of Industry is considering revoking Xin Ke Yuan’s investment privileges granted by the Board of Investment (BOI). Authorities are determined to tighten regulations within the steel industry to safeguard public infrastructure.

The investigation remains ongoing, and officials are committed to uncovering the full extent of Xin Ke Yuan’s potential non-compliance and its impact on Thailand’s construction sector.

Source: The Nation