A Thai-Chinese construction firm has rejected claims that its steel rods failed safety standard tests following widespread criticism and an ongoing investigation into the collapse of a high-rise building in Bangkok. The incident occurred after a powerful earthquake struck Myanmar last month, sparking concerns over construction safety.
Authorities are conducting a thorough probe into Xin Ke Yuan Steel and another Chinese contractor involved in the project to determine why the building, which was still under construction, collapsed during a quake measuring 7.7 in magnitude. The earthquake, which originated in Myanmar on March 28, killed over 3,700 people, including 47 in Thailand, most of whom were at the construction site when the building fell. Additionally, 47 others are still missing.
Investigation into Skyscraper Collapse
The collapse of the high-rise, the only building to fall that day despite the earthquake’s vast reach, has raised questions about the enforcement of construction safety regulations. Authorities are examining the involvement of China Railway No. 10 Engineering Group, a state-run Chinese contractor, which has been accused of neglecting safety protocols. The company’s Thai executive, identified as Zhang, was arrested on suspicion of using nominees to operate the business in violation of local laws.
Under Thai law, foreign companies can only operate in the country through joint ventures with Thai partners, with foreign ownership limited to 49% to protect local competition. Thai shareholders of the company are also under investigation for allegedly acting as nominees for foreign investors.
The Department of Special Investigation (DSI), Thailand’s equivalent of the FBI, is focusing on the quality of the construction materials used in the building and whether the bidding process was manipulated illegally.
Steel Rods Under Scrutiny
The company, Xin Ke Yuan Steel, a firm partly owned by Chinese nationals, has come under scrutiny due to the steel rods it supplied for the construction project. These materials are now central to the investigation into the building’s collapse. The firm’s operating license has been suspended since December, following a fatal fire at its Rayong factory.
Industry Minister Akanat Promphan revealed that two types of steel rods found at the collapse site did not meet safety standards. Both types of steel rods were supplied by Xin Ke Yuan. Authorities conducted a raid on the company’s factory on April 11, seizing samples of the steel products, which had already failed two separate safety tests.
In response, the company’s legal team disputed the test results at a press conference on Monday. They insisted that all of their products meet safety standards and claimed that they are being treated unfairly by the authorities. However, they declined to comment specifically on the results of the steel rod tests found at the collapse site.
Further Allegations Against Xin Ke Yuan Steel
In addition to the collapse investigation, Xin Ke Yuan Steel is facing further scrutiny over alleged tax fraud. Earlier this month, Thailand’s Revenue Department filed a complaint accusing the company of issuing over 7,000 false tax invoices. On Monday, the company’s legal representatives denied any wrongdoing, claiming that the accusations were baseless.
This investigation continues to unfold as authorities examine both the quality of construction materials and potential violations of Thai business laws. The findings of this probe could have significant implications for the safety and regulatory oversight of large-scale construction projects in Thailand.
