Thailand’s Department of Industrial Works has announced that it has ordered the closure of BNS Steel Group Co., Ltd., citing multiple legal and environmental violations.
The move represents a significant enforcement action aimed at stabilizing the domestic steel industry.
Violations uncovered during inspection
Authorities found that the company, which has an annual production capacity of 135,000 mt of billets and 65,000 mt of reinforcing steel, had been operating without properly notifying regulators of its operational start.
The inspection, conducted in cooperation with the Chonburi Provincial Industrial Office, also revealed that the company’s products failed to meet required industrial standards.
Additional violations included improper industrial waste management, non-compliance with Environmental Impact Assessment requirements, and breaches of permit conditions.
Continued operations despite warnings
Despite repeated warnings and suspension orders issued by the Industrial Estate Authority of Thailand, the company continued its activities. As a result, its land-use and operating permit was revoked on May 13, 2025, effectively ending its legal status as a factory.
A follow-up inspection in April 2026 found that BNS Steel had installed machinery and conducted trial production in preparation to resume operations. These actions were deemed a direct violation of the Ministry of Industry’s 2025 regulation banning new or expanded capacity for reinforcing steel and billet production.
Policy aims to curb oversupply
The regulation was introduced to address oversupply and low capacity utilization in Thailand’s steel sector, supporting market stability and broader economic balance. Authorities emphasized that once the facility loses its legal factory status, it cannot resume operations under current regulations.
The Industrial Estate Authority of Thailand has issued a final shutdown order, warning that further violations will result in strict legal action.