Thailand Cracks Down on Illegal Factories in Bid to Clean Up Industry

[webfact]

Industry Minister Akanat Promphan | Facebook The Nation

 

Thailand's Ministry of Industry, led by Minister Akanat Promphan, is intensifying efforts to shut down illegal factories, primarily targeting those owned by Chinese investors.

 

This crackdown, known as the "Sud Soi" initiative, aims to combat unlawful industrial practices harming both the economy and environment. This movement has garnered support from civil society and NGOs, who have long voiced concerns about "grey businesses" operating unchecked.

 

The ministry is particularly focusing on upstream industries like steel and recycling, notorious for illegal activities. These foreign-owned steel plants are producing low-quality steel with outdated technology, which is then dumped at prices Thai producers can't match.

 

Furthermore, low-grade steel flooding the market is causing oversupply, with profits being repatriated abroad while Thailand bears the environmental costs.

 

Moreover, many of these factories lack proper pollution controls and waste management systems. Mr Akanat has pledged to close substandard plants and implement stringent quality-control systems for all steel products. The ministry is also working on new regulatory standards for steel, plastic, and rubber, aiming for stricter quality oversight.

 

Illegal recycling and waste-handling facilities have become a significant issue, particularly after exemptions from zoning laws were granted by the defunct National Council for Peace and Order (NCPO).

 

This has turned provinces like Rayong, Chonburi, Prachinburi, and Chachoengsao into hotspots for illegal operations. Mr Akanat noted that these businesses generate significant revenue, which should benefit Thailand, but instead is repatriated, leaving behind environmental damage.

 

Aside from enforcement, the ministry plans to attract high-level industrial investment, focusing on advanced technologies and environmental sustainability.

 

This new initiative welcomes investors from the US, the EU, and even Chinese firms seeking legitimate operations in Thailand. Mr Akanat envisions a new industrial revolution for Thailand, with legal reforms laying a foundation for future growth.

 

The collaborative efforts among government agencies, NGOs, media, and civil groups have already seen significant progress, as in the notable case against Sin Ker Yaun Steel, implicated in a building collapse due to substandard materials.

 

Over 1,000 cases have been filed against the company, marking a new culture of accountability to protect public interest.

 

  Adapted by ASEAN Now from Bangkok Post 2025-06-19

 

 

[ukrules]

4 hours ago, webfact said:

This movement has garnered support from civil society and NGOs

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