Xin Ke Yuan Steel Co., Ltd.
Rayong Steel Mill Busted for Substandard Production: A Case of "Chinesium" Quality
A steel mill in Rayong, Thailand, Xin Ke Yuan Steel Co., Ltd., has been found to be producing substandard reinforcing steel (rebar), raising serious concerns about safety and construction quality. Following a fire at the factory in December 2024, an investigation by the Ministry of Industry’s “Sud Soi Inspection Team” uncovered multiple safety and environmental violations, along with evidence of substandard steel production.
| 🏢 ScamCom Disclaimer: | The information provided on ScamCom is for educational purposes only. We cannot guarantee the accuracy or completeness of the content. Proceed with caution and contact authorities if you believe you've been scammed. The article about ScamCom does not endorse any specific products, services, or individuals. |
|---|
Minister of Industry, Mr. Eknatt Promphan, revealed on January 10, 2025, that the rebar produced by Xin Ke Yuan Steel Co., Ltd. failed critical quality tests. These failures directly impact the strength and integrity of the steel, posing a significant risk to any structures built using it. As a result, 2,441 tons of the substandard rebar, valued at approximately 49.2 million baht, has been seized, and legal action will be taken against the company.
Key Findings of the Investigation:
The investigation revealed several critical issues with the company's operations:
- Non-Compliance with Standards: Despite holding licenses from the Thai Industrial Standards Institute (TISI), the company failed to adhere to established quality standards.
- Unregistered Suppliers: The company sourced raw materials from unregistered suppliers, indicating a lack of proper quality control and traceability.
- Inadequate Supplier Evaluation: There were no established criteria for evaluating the quality and reliability of raw material suppliers.
- Inconsistent Chemical Composition: The chemical composition of the produced steel did not meet the required standards set by TISI.
Impact on Steel Quality:
Testing conducted by the Iron and Steel Institute of Thailand revealed two key failures in the rebar:
- Reduced Rib Height: The height of the ribs on the rebar, which is crucial for bonding with concrete, was insufficient. This deficiency significantly reduces the adhesion between the steel and concrete, compromising the structural integrity of reinforced concrete.
- High Boron Content: The presence of excessive boron made the steel brittle and reduced its toughness. This makes the steel more susceptible to cracking and failure under stress, potentially leading to catastrophic structural collapses.
Legal Action and Consequences:
The Ministry of Industry has taken swift action:
- Seizure of Substandard Steel: All substandard rebar produced between October and December 2024, totaling 2,441 tons, has been seized.
- Legal Prosecution: Legal proceedings will be initiated against the company and those responsible. The penalties for producing and distributing substandard products include imprisonment of up to two years, fines of up to 2 million baht, or both. Penalties also exist for improper display of the TISI mark and for distributing non-compliant goods.
- Production Process Rectification: The company has been given 30 days to rectify its production processes. Failure to do so will result in the suspension of its operating licenses.
- Product Recall: The company has been ordered to recall all substandard rebar already distributed to the market. TISI officials will also conduct inspections at retail outlets and modern trade stores to seize any remaining substandard products and pursue legal action against distributors if necessary.
Company Officials Involved:
The company's directors, Jianqi Chen, Su Longchen, and Somphan Pankaew, will also face legal action.
The "Chinesium" Context:
The term "Chinesium" is a derogatory slang term often used to describe cheap, low-quality metals manufactured in China. While this case involves a Chinese company operating in Thailand, the issues of substandard production and disregard for quality standards resonate with the negative connotations associated with "Chinesium". This incident highlights the importance of rigorous quality control and enforcement of standards to prevent the production and distribution of potentially dangerous products, regardless of their origin. This case also serves as a warning to construction companies and consumers to be vigilant in verifying the quality and certifications of building materials.
