The House Industry Committee discussed the issue of Xin Ke Yuan reopening an IF steel production plant. The Minister of Industry confirmed a directive requiring every factory to have a 'steel refining furnace.' The committee acknowledged loopholes in the previous TISI regulations and is working to issue a stricter new version.
At 1:00 p.m. on 17 Jun 2026 GMT+7 at the Parliament, Mr. Supachok Srisukchon, Member of Parliament for Nakhon Pathom from the Bhumjaithai Party and Chair of the House Industry Committee, announced after the meeting regarding the Department of Industrial Works' permission for Xin Ke Yuan Steel Company Limited (SKY) to resume production of IF (Induction Furnace) steel. The committee invited relevant agencies to provide explanations, including the Department of Industrial Works, the Thai Industrial Standards Institute (TISI), and the Iron and Steel Association. SKY did not send representatives but submitted explanatory documents instead. The committee questioned the Department of Industrial Works about why this company, previously ordered to shut down once, was allowed to reopen—a matter that raised public concern and was addressed by Minister of Industry Warawut Silpa-archa in a parliamentary query. He clarified that the reopening authority does not lie with the Cabinet or the Minister of Industry. Under Section 39 of the Factory Act of 1992, if a factory fails to meet standards set by the Department of Industrial Works and TISI, the Department has the authority to order a complete production halt.
The Department of Industrial Works explained to the committee that SKY's production processes meet the required standards, including environmental and industrial standards. They conducted random sampling of 41,635 steel bars sent to two recognized steel quality testing institutes, in accordance with TISI standards. Regarding public confidence in IF steel production, the committee plans to review a draft of the new TISI standard for construction steel bars next week, aimed at enhancing quality standards for both IF and EF steel types. Particularly, IF steel quality does not currently match EF steel produced via the steel refining furnace. The Minister of Industry has instructed TISI to mandate that all IF steel plants install a steel refining furnace to comply with the upcoming new TISI draft standard. The committee will invite representatives from IF and EF steel furnace associations to reach a consensus on the new standards to be adopted.
When asked if SKY could continue operations without a steel refining furnace, Mr. Supachok said TISI assured the committee that inspections would be conducted, covering raw materials, production sources, and final products at retail outlets. Random inspections will cover all 40-plus IF steel plants nationwide. He acknowledged that the old TISI regulations had loopholes but urged the public to trust that the committee will expedite the new TISI regulations to restore confidence in Thai steel. Regarding whether the committee will inspect factories directly, Mr. Supachok said inspections of private factories require prior written requests. The committee itself lacks authority for direct inspections but coordinates with provincial industry offices and the Department of Industrial Works. Such inspections are expected in about 2-3 weeks during the parliamentary recess.