Thailand's Department of Industrial Works announced that it has ordered the closure of BNS Steel Group Co., Ltd., citing numerous legal and environmental violations.
The move represents a major enforcement action aimed at stabilizing the domestic steel industry.
Irregularities revealed during inspections
Authorities found that the company, which has an annual production capacity of 135,000 tons of billets and 65,000 tons of reinforcing steel, was operated without proper notification to regulators about the start of operation.
An inspection carried out jointly with the Chonburi Provincial Industrial Department also found that the products company does not meet required industry standards.
Additional violations included improper management of industrial waste, failure to comply with EIA requirements, and violations of permit conditions.
Continued operations despite warnings
Despite repeated warnings and suspension orders issued by the Industrial Property Authority of Thailand, the company continued its operations. As a result, the land use and operating permit was revoked on May 13, 2025, effectively depriving the company of its legal status as a plant.
A subsequent inspection in April 2026 revealed that BNS Steel had installed equipment and conducted trial production in preparation for resumption of operations. These actions were seen as a direct violation of the Ministry of Industry's 2025 regulation prohibiting new or expanded capacity for the production of reinforcing steel and billets.
The policy is aimed at curbing oversupply
The regulation was introduced to address the problem of oversupply and low capacity utilization in the steel sector Thailand, maintaining market stability and broader economic balance. Authorities stressed that once the plant loses its legal status as a factory, it will not be able to resume operations in accordance with current regulations.
The Industrial Estate Authority of Thailand has issued a final closure order, warning that further violations will attract strict legal action.
