Confirm use of substandard steel in collapsed high rise

[reader]

From Pattaya News

By Adam Judd

Bangkok, March 31, 2025 – Test results from 28 steel samples recovered from the wreckage of the collapsed State Audit Office (SAO) building in Bangkok’s Chatuchak district have revealed that two failed to meet required standards, according to Nonthichai Likitaporn, director of the Thai Industrial Standards Institute (TISI)’s Standards Division 1. The findings mark a turning point in the ongoing investigation into the collapse, which occurred on March 28 following a powerful earthquake centered in Mandalay, Myanmar, approximately 392 kilometers from Thailand’s Mae Hong Son province.

The 33-storey SAO building, still under construction at the time of the collapse, was intended to serve as the new headquarters for Thailand’s auditing authority. The disaster claimed at least multiple lives, injured dozens, and left scores of workers missing, with rescue operations continuing into Monday evening. The structure, valued at 2.13 billion baht (approximately $63 million USD), was being built by a partnership between a Thai and Chinese company.

 

Nonthichai’s announcement has intensified scrutiny on Xin Ke Yuan Steel Co., Ltd., previously identified as the supplier of the deformed steel bars used in the building’s construction. Earlier this year, in January 2025, the Ministry of Industry charged Xin Ke Yuan Steel with producing substandard steel following an inspection of its factory in Ban Khai, Rayong. That investigation, prompted by a fire incident late last year, uncovered multiple safety and environmental violations, as well as evidence that the company’s steel failed to meet critical strength standards. Authorities seized stock and collected samples at the time, with test results confirming deficiencies that could compromise structural integrity.

 

The collapse has also drawn international attention, with the Chinese Embassy pledging cooperation in the investigation. China Railway Number 10, a subsidiary of the state-owned China Railway No. 10 Engineering Group, holds a 49% stake in the ITD-CREC joint venture—the maximum foreign ownership allowed under Thai law.

 

Continues at

https://thepattayanews.com/2025/03/31/some-substandard-steel-used-in-now-collapsed-state-audit-office-building-in-bangkok-confirms-thai-industrial-standards-institute/

[khaolakguy]

China Railway also seems to have a history of corruption issues.

[reader]

We now have a much better idea idea of why the five Chinese nationals were intent on spiriting away cartons of documents from the wreckage of the fatal collapsed high rise

The following article from last year sheds light on the Chinese steel manufacturer that supplied the substandard steel. 

From The Nation

AUGUST 12, 2024

Chinese steel investments threaten Thai industry, warns FTI

The Federation of Thai Industries raises concerns over the potential domination of Thailand’s steel industry by Chinese companies, calls for regulatory action

The Thai steel industry is at risk of being dominated by Chinese companies setting up steel factories in the country, the Federation of Thai Industries (FTI) warned on Monday.

Kriengkrai Thiennukul, the federation’s chairman, said that the Thai steel industry’s capacity utilisation rate has dropped to its lowest in seven years, with the first six months of this year showing a rate of 29.3%, down from 31.2% in the same period last year.

He noted that the impact of Chinese investments, which are expected to boost production capacity to 12.42 million tonnes annually compared to Thailand’s demand of 16 million tonnes.

Notably, Xin Ke Yuan Steel Company, located in Rayong’s Ban Khai district, plans to boost its production capacity to 12.09 million tonnes, including wire rod, steel plate, coated steel, steel pipe and structural steel.

Similarly, Yongjin Metal Technology in Chonburi’s Nong Yai district is planning a stainless steel factory with a production capacity of 0.322 million tonnes per year, he said, adding that most of the projects have been approved by the Board of Investment.

Kriengkrai said these investments are in line with Beijing’s policy to reduce pollution in its own country and navigate trade barriers imposed by other countries.

“But once these steel factories are constructed, it will affect domestic manufacturers,” he warned, adding that the Thai steel industry’s capacity utilisation rate will potentially drop even further.

Despite this influx of Chinese investment, Kriengkrai assured that Thai manufacturers have enough production capacity to meet the country’s demand. He added that the Industry Ministry should introduce regulations to control the establishment of steel factories in Thailand.

He also raised concerns about the import of structural steel that does not meet Thai industrial standards, which could pose safety risks for consumers. He called for the introduction of stricter industrial standards to address this issue.

“Imports of structural steel is rising, especially from China,” he said. “In 2023, Thailand imported 426,340 tonnes of structural steel worth 21 billion baht, of which 92% came from China.”

Wanchai Phanomchai, secretary-general of the Thai Industrial Standards Institute (TISI), echoed these concerns, warning that the volume of products not meeting Thai industrial standards will likely rise. He identified steel and construction materials (37%),  electrical and electronic appliances (33%), car tyres (25%) and consumer products (3%).

He urged government agencies to rigorously investigate these issues, emphasising the need for more officials and measurement tools to ensure compliance with Thai standards.

https://www.nationthailand.com/business/economy/40040512

 

[Moses]

1 hour ago, reader said:

Nonthichai’s announcement has intensified scrutiny on Xin Ke Yuan Steel Co., Ltd., previously identified as the supplier of the deformed steel bars used in the building’s construction. Earlier this year, in January 2025, the Ministry of Industry charged Xin Ke Yuan Steel with producing substandard steel following an inspection of its factory in Ban Khai, Rayong. That investigation, prompted by a fire incident late last year, uncovered multiple safety and environmental violations, as well as evidence that the company’s steel failed to meet critical strength standards. Authorities seized stock and collected samples at the time, with test results confirming deficiencies that could compromise structural integrity.

Well, manufacturer of metal has roots not in China, but in India.

https://tracxn.com/d/legal-entities/thailand/xin-ke-yuan-steel-company-limited/__M9pvJJttj_z-SKcYFLHrHdpeJs_uCHYh-TERmD4G4sE

[khaolakguy]

Not sure why anyone would be so determined to exclude even the possibility of Chinese negligence in this tragedy. 

The link provided does not state as claimed that the steel was manufactured in India, or that Xin Ke Yuan Steel has it's roots in India. Not exactly an Indian name!

[Travelingguy]

Moses has made his Russian propaganda bonafides pretty obvious.  Is he moonlighting now for Chinese interests? Enquiring minds want to know. 

[reader]

This is simply another attempt by Moses to deflect responsibility away from the company responsible for the defective steel. It's located in Rayong, a city in Rayong province on the east coast of Thailand and not in India.

Xin Ke Yuan Steel is a  Chinese company with offices located throughout the world. But the defective product came from its plant in Rayong, as described in the OP.

 

[bkkmfj2648]

I think that we need to take a step back and look at recent events from a "the universe is trying to send us a message" point of view. Yes, put your tinfoil hats on.

1.) On 9 October 2024, the UN General Assembly elected Thailand as a new member of the United Nations Human Rights Council (UNHRC) - to commence on 01 January 2025.

https://www.benarnews.org/english/news/thai/elected-to-unhrc-amid-concerns-10102024151340.html

 

2.) PM Paetongtarn Shinawatra visits with China's President Xi Jinping during her visit 5-8 February 2025.

https://www.mfa.go.th/en/content/post-pr-pm-to-prc-en

 

3.) 27 February 2025 Thailand forcibly deports 40 Uyghurs back to China in violation of international law and the fundamental principal of non-refoulement.

https://news.un.org/en/story/2025/02/1160586

https://ishr.ch/latest-updates/thailand-slammed-by-un-bodies-for-uyghur-deportations-to-china-as-it-assumes-human-rights-council-membership/

 

4.) Thailand suffers from political pushback and fallout from the above item #3, including negative economic consequences.

https://www.bangkokpost.com/business/general/2991604/a-mutually-beneficial-pact

https://www.reuters.com/world/us-sanction-thai-officials-over-deportation-uyghurs-china-2025-03-14/

 

5.) Earthquake in Myanmar on Friday 28 March 2025 causes panic and damage in Bangkok, where 1 single building under construction by a Thai Chinese venture collapses.

https://www.khaosodenglish.com/featured/2025/03/31/probe-focuses-thai-chinese-venture-in-bangkoks-fatal-building-collapse/

The irony is that this building was supposed to be for the Thai SOA = State Audit Office. Of all possible governmental entities to become a victim of potential fraud = amazing.

 

6.) Yesterday, 31 March 2025, at around 10am, there was a panic attack in many downtown governmental offices here in Bangkok, when supposedly new earthquake tremors and cracks were felt and seen, causing evacuations of many governmental buildngs.

https://www.nationthailand.com/news/general/40048117

The Thai PM pleaded with her citizens to stay calm and to not panic so easily and to trust the government.

 

So, what is the universe trying to tell us, in my opinion:

a.) Bad karma caused by this government has caused harm to Thailand and its citizens,

b.) Trust by the citizens in their government has eroded.

I know that this current government survived last weeks no confidence vote by a large majority - but the universe has still spoken, and in my opinion, the universe cannot be ignored or controlled by the Thai government.

https://apnews.com/article/thailand-no-confidence-vote-paetongtarn-fda1ba87ea3aaf920ee65c447e77a08f

Anyone else here believe in the voice of the universe?

 

[reader]

Excerpted From Bangkok Post

The contractors of the under-construction office tower that collapsed in Bangkok during last Friday’s earthquake apparently used substandard steel bars made by a factory that had been shuttered by authorities.

Samples of two different sizes of steel bars collected from the site of the State Audit Office building failed tests by the Iron and Steel Institute of Thailand for their mass, chemical composition and ability to withstand stress before breaking.

The metal was made by a company whose factory had been shut for other violations since December, Thitipas Choddaechachainun, the head of a working group at the Ministry of Industry, said without identifying the business.

Images of the steel bars shared by the ministry and local media displayed the brand “Sky”, made by Xin Ke Yuan Steel Co, which had a factory in Rayong province. Authorities closed the factory on safety grounds in December due to an accident involving a gas tank leak and seized more than 2,400 tonnes of steel.

Xin Ke Yuan Steel is the second Chinese company to draw Thai scrutiny. The skyscraper was being constructed by ITD-CREC, a joint venture between SET-listed Italian-Thai Development Plc and China Railway Number 10 Thailand Co.

Authorities will collect more steel samples and collaborate with the probe panel, Industry Minister Akanat Promphan said on Tuesday.

China Railway Number 10, which could not be reached for comment, is also set to be investigated by the Department of Special Investigation to see if it used Thai nominees as proxy shareholders, Justice Minister Tawee Sodsong said.

A phone operator at the Xin Ke Yuan Steel plant said the factory operations remained suspended. Executives at the firm couldn’t be reached. The company was registered in 2011 with nine Chinese nationals holding an 80% stake, according to the Department of Business Development database. A representative for Italian-Thai could not immediately be reached for comment.

https://www.bangkokpost.com/thailand/general/2992846/substandard-steel-used-in-collapsed-bangkok-tower

 

[reader]

From The Nation

China Railway No 10 and its 13 government contracts worth 7.2B

China Railway No. 10 Engineering Group, a subsidiary of the Chinese state-owned enterprise, has come under intense scrutiny from government authorities and faced public criticism after winning the bid for the construction of the new State Audit Office (SAO) building, valued at over 2.1 billion baht. 

The company was part of the ITD-CREC joint venture alongside Italian-Thai Development. However, before construction was completed, the building collapsed entirely following an earthquake on March 28, 2068. 

The disaster left hundreds of workers trapped under the rubble, resulting in numerous fatalities, injuries, and missing persons.

Currently, China Railway No. 10 (Thailand) is under investigation by a fact-finding committee appointed by Prime Minister Paetongtarn Shinawatra, as well as a separate investigative committee under the Ministry of Interior, established by Deputy Prime Minister and Interior Minister Anutin Charnvirakul. 

The investigations have been given a strict seven-day deadline, meaning the findings are expected to be revealed by next week.

An interesting point is that China Railway Number 10 operates using a business model as a "joint venture" with other private companies. It started by purchasing tender documents for various government projects, but did not submit bids or proposals directly. Instead, it struck deals with well-capitalized Thai private companies to form joint ventures that would submit bids on their behalf.

Since its establishment in 2018, China Railway Number 10 has participated in government projects through joint ventures, initially bidding on medium-sized projects worth around 100 million baht and later moving on to larger projects worth 300 to 500 million baht. It eventually ventured into major government concession projects valued at around 1 billion baht.

From an analysis of government procurement data from the fiscal year 2019 (starting October 2018) to the fiscal year 2025 (starting October 2024), China Railway Number 10 has participated in joint ventures and secured at least 13 government contracts.

The most well-known project is the construction of the new State Audit Office (SAO) building and its associated structures. According to contract No. 021/2564, dated November 23, 2020, the ITD-CREC joint venture—comprising Italian-Thai Development Public Company Limited and China Railway Number 10 (Thailand) Co., Ltd.—was awarded the project for 2.136 billion baht.

The remaining 12 projects are detailed as follows:

Continues at

https://www.nationthailand.com/blogs/business/corporate/40048188

[unicorn]

On 4/1/2025 at 3:45 AM, Travelingguy said:

Moses has made his Russian propaganda bonafides pretty obvious.  Is he moonlighting now for Chinese interests? Enquiring minds want to know. 

@Moses lying, on this site?? Why I'm absolutely shocked! 🤣

[reader]

From Pattaya News

Justice Minister Orders Probe into Collapse

Bangkok, April 2nd, 2025 — Justice Minister Pol. Col. Tawee Sodsong announced that the Department of Special Investigation (DSI) has officially investigated the collapse of a new 33-story State Audit Office (SAO) building during Myanmar’s powerful earthquake on March 28th.

While emergency rescue efforts were the priority, authorities are now focused on determining the cause of the collapse, as it was the only high-rise in Thailand to fail.
DSI’s preliminary investigation centers on allegations that a foreign-owned company used Thai nominees to control construction contracts, a violation of Thai law.

The company in question, with a registered capital exceeding 100 million baht, is linked to over ten similar firms sharing the same Thai directors and business addresses. Officials are also investigating whether substandard materials or bid-rigging contributed to the disaster.

Continues at

https://thepattayanews.com/2025/04/02/thai-justice-minister-orders-probe-into-collapsed-33-story-government-building/

[vinapu]

3 hours ago, reader said:

it was the only high-rise in Thailand to fail.

that's the very good point, enough to smell something suspicious

[bkkmfj2648]

2 hours ago, vinapu said:

that's the very good point, enough to smell something suspicious

And out of all of the possible buildings in Bangkok to fall down, it is the SAO = State Audit Office building.

This is a wake up call.

Audit the fuck out of this investigation.

Mother Earth has spoken!!!

[reader]

TIT. If you don't rig a bid when you get the chance you're deemed unfit for office.

Vietnam not much different. Only real difference is that in VN they take it more seriously and rigger actually loses job and gets jail time.

Example from today VN Express:

A former chairman of An Giang Province was sentenced to jail on Wednesday for taking a US$300,000 bribe and allowing a company tomine sand illegally.

The Ho Chi Minh City People's Court awarded Nguyen Thanh Binh a sentence of eight and a half years.

https://e.vnexpress.net/news/news/crime/province-leader-jailed-for-taking-300-000-bribe-to-let-company-mine-sand-illegally-4869367.html

[khaolakguy]

On 4/2/2025 at 3:25 AM, reader said:

The most well-known project is the construction of the new State Audit Office (SAO) building and its associated structures

Well it's certainly the most well known project of China Railway now!

Moses seems to have gone quiet on his previous accusations of racism towards someone raising the possibility of Chinese culpability!