Questions mount over approval for Xin Ke Yuan restart

Industry Minister Varawut Silpa-archa says he is ready to explain to opposition MPs the Industrial Works Department's decision to allow Chinese steelmaker Xin Ke Yuan to resume operations on June 5 after being suspended since April last year.

Opposition parties plan to submit an interpellation to the House Speaker tomorrow, questioning the industry minister over the company's recent resumption of steel production at its factory in an industrial estate in Rayong province.

Varawut said today that the director-general of the Industrial Works Department has the authority to order the suspension or resumption of a factory's operations without the approval of the industry minister.

Regarding the Xin Ke Yuan case, he said he received a report from the Industrial Works Department over the weekend stating that the Chinese steelmaker had fulfilled all conditions imposed by the department when its operations were suspended.

He added that the opposition's move to question him about the case would provide a good opportunity to clear up any doubts surrounding the Industrial Works Department's decision.

Asked about the quality of the company's rebar products, which remains a concern among some steel traders, Varawut assured that if the products are found to be below the standards set by the Thai Industrial Standards Institute (TISI), the Industrial Works Department can order the company to rectify the deficiencies and suspend its operations again if it fails to comply.

Xin Ke Yuan's rebar products were used in the construction of the State Audit Office building, which collapsed in March last year following a devastating earthquake in Myanmar. The products were subsequently found to be substandard.