Thai authorities dismantle a clandestine factory in a free trade zone, confiscating 1,600 metric tons of harmful waste.
Chonburi Raid Uncovers Illegal Factory, Environmental Breaches, and Undocumented Labor
Thai authorities have launched a substantial operation targeting an unlawful "zero-dollar factory" operating within a free zone in Chonburi province. The Ministry of Industry, in collaboration with the Natural Resources and Environmental Crime Suppression Division (NRECD), conducted the raid on May 22, 2023, at Metal Central Co., Ltd., stationed in the Nong Hiang sub-district of Phanat Nikhom district.
The operation unearthed several serious legal violations. Metal Central Co., Ltd., it seems, was using warehouse space for factory operations and leasing these spaces with the assistance of Thai brokers who facilitated communication with government agencies and foreign investors. The company, initially registered as a business selling finished plastic products, had not notified authorities of its commencement of operations, thereby operating illegally. Furthermore, the company had expanded its machinery capacity beyond the permitted limit.
Moreover, Cat Metal International Co., Ltd., occupying the remaining warehouse space and machinery, was found to be operating without a factory permit. The company was employing undocumented migrant workers to handle contaminated aluminum scrap, electronic circuit boards, plastic waste, rubber scrap, and dust. The authorities seized a total of over 1,600 tonnes of these materials, and the factory supervisor admitted the aluminum was destined for China, while the fate of the electronic circuit boards remained unclear.
Environmental regulations were also repeatedly disregarded, with the factory illegally discharging untreated wastewater into natural water sources, possessing hazardous substances, and storing plastic waste, rubber scrap, and dust in large bags. The DIW's Pollution Research and Warning Centre for the Eastern Region is currently testing samples of the shredded plastic and rubber scrap in the large bags, along with water samples, to assess the potential presence of heavy metal contamination.
In response to these discoveries, the established policy dictates the immediate cessation of any illegal activities or those impacting the public. Legal action is being taken against Metal Central Co., Ltd. and Cat Metal International Co., Ltd. regarding the establishment and operation of their businesses without a permit, as well as unlawful possession of hazardous substances. Additionally, the Nong Hiang Subdistrict Administrative Organisation has ordered the cessation of the wastewater discharge and is filing legal proceedings under public health and environmental laws.
Undocumented migrant workers were also discovered during the raid, leading to the arrest and prosecution of 14 individuals for violating immigration laws. Legal action is being taken against their employers for hiring undocumented foreign workers.
The operation stemmed from a tip-off received via the NRECD hotline by a concerned citizen about a polluting factory. The NRECD conducted surveillance until enough evidence was collected, enabling them to secure a search warrant and coordinate with the Ministry of Industry's inspection team for the integrated operation.
Tags: Industry Ministry, toxic water, waste, Factory, Chonburi, Thailand
In a statement, Minister Akanat Promphan emphasized the importance of swift and decisive legal action, alongside further investigations into related offenses or potential organized crime activities within Free Zones. He stressed that tax-exempt areas should not be exploited for illicit activities, as they are intended to benefit the national economy through customs duty advantages for legitimate businesses.
The Ministry's commitment to pursuing and eradicating these environmentally harmful practices bodes well for a cleaner and more law-abiding business landscape in Thailand.
- The illegal factory, Metal Central Co., Ltd., was operating in a tax-exempt Free Zone in Chonburi, Thailand, but had not officially registered its business, thereby evading international trade norms and the economy's financial oversight.
- The company's operations were beyond the permitted limit, and it was found to be engaging in crime related to environmental breaches, such as the illegal disposal of untreated wastewater and hazardous substances.
- The factory's activities also impacted the health of both the local population and undocumented workers, who were found to be handling contaminated materials like aluminum scrap, electronic circuit boards, plastic waste, rubber scrap, and dust.
- The industrial sector's reputation is under scrutiny due to this incident, as it raises concerns about the ethical standards in various business sectors, including environmental-science, finance, and international business deals.
- In light of this event, it is crucial for the authorities to strengthen their oversight and increase scrutiny over factories, particularly within Free Zones, to ensure the protection of the environment, public health, and labor rights, thereby maintaining the integrity of Thailand's business landscape.
