Araya Sailaiphet, Deputy Director-General of the Department of Industrial Works, acting on behalf of the Permanent Secretary of the Ministry of Industry, yesterday (5 June 2026), signed an urgent order permitting Xin Ke Yuan Steel Co., Ltd., located within the industrial estate of WHA Corporation Public Company Limited (SET: WHA) in Rayong, to immediately resume its production lines and operations as usual, under the authority of Section 39, Paragraph 2 of the Factory Act B.E. 2535 (1992).
The signing follows officials’ inspections of air pollution and various system checks, which found the company had completely complied with the orders to improve the factory. Previously, Xin Ke Yuan Steel had been ordered to halt all operations for renovations due to multiple legal disputes since late 2024.
The reopening of Xin Ke Yuan Steel has stirred alarm within Thailand’s steel and construction sectors. Previously, Akanat Promphan, who served as Minister of Industry at the time, had established a special task force to crack down on substandard and polluting steel mills, leading to the closure of this plant stemming from more than seven accumulated legal cases. The primary triggers were as follows:
Steel quality issues: Connections were found with the collapse of the State Audit Office headquarters in 2025 from an earthquake, part of which used rebar produced at this factory, utilizing Induction Furnace (IF) technology—an outdated technology lacking contaminant removal systems. The Chinese authorities banned and closed such furnace plants nationwide, prompting investors to relocate production bases to Thailand.
Factory safety standards: Reports were made of severe accidents within the premises resulting in fatalities.
Hazardous industrial waste crisis: Abnormal levels of “EAF Dust” were detected, a hazardous industrial waste, leading to suspicions of illegal imports and burial or disposal in Thailand.
Additionally, Varawut Silpa-archa, Minister of Industry, had clearly declared a policy not to support factories using IF technology and planned to push for the closure of all such plants within three years. This is to ensure the public has access to high-quality steel that meets international standards and safety.
During the transition period, the Ministry of Industry is likely to assign associations and relevant agencies to strictly supervise so that IF-produced steel is not used in industrial projects or mega-projects. Usage would be permitted only for small-scale constructions, like buildings no more than two stories, fences, or surfaces that do not require major weight-bearing. Rolling mills wishing to continue business must adapt by importing high-quality steel billets from abroad or switching to Electric Arc Furnace (EAF) technology, which is globally accepted.
A high-level source in the steel industry expressed concern that this factory’s reopening is surrounded by unknown issues, particularly rumors about the use of the “Thailand Automotive Institute” as a certifying body for steel standards. This has created confusion in the industry because the Automotive Institute is usually responsible only for steel used in the automotive sector, while inspections of structural steel and rebar standards should fall under the direct expertise of the “Iron and Steel Institute of Thailand.”
The greatest current risk for the industry concerns the fate of more than 40,000 tons of previously seized rebar stock, which failed to meet quality standards. If this massive volume of steel floods into the market for dumping, it would heavily damage the country’s already stagnant steel pricing mechanisms and threaten the safety of Thailand’s construction sector.
Therefore, the Minister and relevant agencies have been urged to intensify monitoring of the financial routes and product distribution from this factory, to prevent the use of substandard steel and avoid any recurrence of past tragedies.