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BOI Meeting on Xin Ke Yuan Steel Privileges Collapses Amid Certification Row

BOI Meeting on Xin Ke Yuan Steel Privileges Collapses Amid Certification Row

Provided by Nation.

TISI approval document stalls revocation, fears of costly legal repercussions rise

 

A special meeting of Thailand's Board of Investment (BOI) to revoke investment privileges from Xin Ke Yuan Steel has collapsed, following the emergence of a Thai Industrial Standards Institute (TISI) document certifying the company's product quality.

 

The document has thrown the revocation process into disarray, raising concerns about potential legal challenges and costly compensation claims, reminiscent of the Akara gold mine dispute.

 

The BOI meeting, held on Friday (April 4th, 2025), was convened after the Ministry of Industry ordered the closure of Xin Ke Yuan Steel's factory and seized substandard steel products.

 

This action followed two separate incidents: a factory fire on December 18th, 2024, which led to a temporary shutdown, and the collapse of the State Audit Office (SAO) building on March 28th, 2025, where Xin Ke Yuan Steel-supplied steel was again found to be substandard.

 

Despite the factory remaining closed, the BOI's attempt to withdraw the company's investment privileges was thwarted by a document issued by TISI on January 20th, 2025.

 

This document confirmed that Xin Ke Yuan Steel had rectified previous issues and met the required standards, leading TISI to rescind a prior warning letter issued on December 23rd, 2024.
  

This TISI certification effectively undermined the BOI's legal grounds for revoking the privileges. Legal experts warn that proceeding with the revocation would likely result in Xin Ke Yuan Steel filing a lawsuit with the Administrative Court, demanding substantial compensation.

 

The government fears a repeat of the Akara gold mine case, where legal disputes resulted in significant financial losses for the state.

NATION

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