Chonburi: The Sudsoi team raided a steel factory in Chonburi Province after receiving a complaint that steel used for building houses had broken into two pieces. It was found to be an illegal factory secretly producing induction furnace (IF) steel, resulting in the seizure of 13,000 tons of steel. Meanwhile, industry experts support the cancellation of IF furnaces due to their potential to produce substandard steel and assure that this will not lead to a shortage of steel products.
According to Thai News Agency, Mr. Pongpol Yodmuangcharoen, Secretary to the Minister of Industry and Spokesperson for the Ministry of Industry, posted on Facebook about discovering a "ghost factory" during their mission in Chonburi. Minister Ekkanat ordered an inspection based on public complaints about steel bars breaking during construction. The investigation revealed that the BNS brand ribbed steel bar, produced using the IF method, had boron levels exceeding the standard, leading to brittleness. The factory, owned by Mr. Ye Youlin, had not registered for business operations since 2019, making their production illegal. The Ministry coordinated with the Trade Competition Commission to investigate further, resulting in the seizure of 13,000 tons of steel and charges that could lead to nine years of imprisonment. The case has been forwarded to the industrial estate governor to consider permanently revoking the factory's business license.
Mr. Vikrom Wacharakupt, Executive Director of the Federation of Thai Industries, expressed support for the Ministry's approach to discontinuing the use of IF furnaces. He noted that these furnaces struggle to control steel quality, which could compromise building safety. Historically, Thai Industrial Standards required construction steel bars to be produced using smelting or Electric Arc Furnace (EAF) processes. However, standards were adjusted in 2016 to allow IF furnaces, coinciding with China's policy to close IF factories due to pollution concerns, causing some factories to relocate to ASEAN countries, including Thailand.
Mr. Wikrom emphasized that while IF furnaces are suitable for producing special steels like cast iron or stainless steel, they are inefficient in removing contaminants when used with general scrap iron for construction steel. This can lead to inconsistent steel quality and inability to withstand design forces, posing safety risks.
In a recent Industry Promotion and Support Meeting chaired by Mr. Kriangkrai Thienukul, Chairman of the Federation of Thai Industries, the discussion highlighted the need for high-quality, strong, and environmentally friendly steel production in Thailand. The meeting underscored the importance of resource efficiency, reducing steel usage, and minimizing carbon emissions. EAF furnaces offer better contaminant control and can produce durable steel bars for safe construction.
The industry assures that EAF technology provides ample production capacity for the Thai market, covering various steel types beyond bars. Thus, discontinuing IF furnaces will not lead to a shortage of steel products.