Substandard steel linked to deadly collapse; Chinese contractor and steel factory under scrutiny amid broader investigation
BANGKOK – Mountainous piles of debris surrounded the collapsed State Audit Office (SAO) building site in Chatuchak district on Tuesday, as cranes from private firms joined emergency crews in the search for survivors. The 30-storey tower—only 45% complete—was the only building in the Thai capital to collapse during the powerful 7.7-magnitude earthquake that struck Myanmar on March 28, killing at least 12 construction workers and trapping dozens more.
Now, the incident is unraveling into a major scandal that may shake up Thailand’s construction industry, as government officials zero in on both the Chinese contractor and the substandard steel allegedly used in the project.
Steel Bars Failed Safety Tests
Initial findings point to critical material failures. Steel samples recovered from the crash site failed mass, composition, and tensile strength tests, according to the Iron and Steel Institute of Thailand. The bars, marked with the brand Sky, were traced back to Xin Ke Yuan Steel, a company whose Rayong-based factory was shuttered in December following a gas tank accident. Authorities had previously seized over 2,400 tonnes of steel from the site.
Despite the closure, steel from the banned factory appears to have made its way into the SAO project. Industry officials confirmed that more samples will be collected and tested, while investigations are ongoing into whether the shutdown order was violated.
“We can prosecute any manufacturer and seller of substandard products,” said Thitipas Choddaechachainun of the Ministry of Industry. “We’ll also inspect the factory to verify compliance and inventory control.”
Spotlight on the Chinese Contractor
The SAO building was being constructed by ITD-CREC, a joint venture between Thailand’s Italian-Thai Development Plc and China Railway No.10 Engineering Group. In light of the collapse, Prime Minister Paetongtarn Shinawatra has ordered an investigation into all projects awarded to the Chinese contractor, citing potential systemic issues.
“The collapsed building has cost lives and hurt Thailand’s image,” the prime minister said following Tuesday’s cabinet meeting.
The Department of Special Investigation (DSI) has now been directed to examine whether China Railway No.10 may have used nominee Thai shareholders—a violation of foreign ownership regulations.
Justice Minister Tawee Sodsong confirmed the DSI’s involvement and said the probe will extend to the company’s broader operations in Thailand.
Cracks in the Industry
The building collapse has sparked intense public scrutiny, especially given that it was the only high-rise in Bangkok to fail during the quake. Viral images of the wreckage have raised tough questions about design quality, construction oversight, and materials vetting.
According to officials, the building’s failure was not due to the quake’s force alone, but a combination of design flaws and material deficiencies.
Meanwhile, the Ministry of Industry has vowed to intensify enforcement of Thailand’s Industrial Products Standards Act and crack down further on substandard steel manufacturers.
What’s Next
While rescue teams continue to clear rubble with the help of mobile cranes, the broader implications are still unfolding. Multiple agencies are coordinating to trace where else materials from Xin Ke Yuan may have been used and how deeply the problem runs within Thailand’s infrastructure development sector.
With hundreds of large-scale projects involving international contractors underway nationwide, the government is bracing for further revelations—and preparing to act.
