Thai-Chinese Steel Company Denies Allegations After Fatal Building Collapse

A Thai-Chinese steel company, Xin Ke Yuan Steel, has denied allegations that its products failed safety standards after a high-rise under construction in Bangkok collapsed last month, following a powerful earthquake in neighboring Myanmar. The collapse, which resulted in 47 deaths, has sparked a nationwide investigation into construction safety practices and potential malpractice by the companies involved.

Investigation into Safety Standards and Construction Quality

The building, intended as a new office for the State Audit Office of Thailand, was the only structure in Bangkok to completely collapse after a 7.7-magnitude earthquake struck Myanmar on March 28. The quake, which killed more than 3,700 people in Myanmar, also claimed the lives of 47 people in Thailand, many of whom were at the collapse site. Dozens more remain missing.

Authorities are now examining the role of Xin Ke Yuan Steel and China Railway No. 10 Engineering Group, another Chinese contractor involved in the project. In particular, questions have been raised about the quality of the steel rods supplied by Xin Ke Yuan, which were reportedly used in the construction of the building. Industry Minister Akanat Promphan revealed that two types of steel rods found at the collapse site had failed safety tests. Xin Ke Yuan had previously come under scrutiny after a factory fire in December 2022, which led to the suspension of its operating license.

On April 11, Thai authorities raided Xin Ke Yuan’s factory in Rayong province to collect evidence. While the company’s legal team defended its products, claiming that all their materials passed safety standards, they declined to comment on the specific test results of the steel rods found at the collapse site.

Legal Troubles and Allegations of Fraud

The ongoing investigation has also uncovered allegations of corporate malpractice. A Thai engineer recently filed a police complaint claiming that his name and signature were forged on a construction plan for the building, although he denied any involvement in the project. Furthermore, the company is facing accusations from Thailand's Revenue Department of issuing over 7,000 false tax invoices. The company's lawyers have denied these allegations as well.

The incident has led to further scrutiny of foreign ownership laws in Thailand. Foreign companies are allowed to operate in the country but must form joint ventures with local partners, with foreign ownership limited to 49%. Thai authorities are investigating whether this regulation was violated in the case of Xin Ke Yuan Steel.

As the search for the remaining missing workers continues, the collapse has raised broader concerns about the enforcement of building regulations and the integrity of construction practices in Thailand.