Thai Authorities Bust 'Zero-Dollar Factory' in Free Zone, Seize 1,600 Tonnes of Toxic Waste

 

The Ministry of Industry, working in conjunction with the Natural Resources and Environmental Crime Suppression Division (NRECD), has launched a major raid on an alleged "zero-dollar factory" operating unlawfully within a free zone in Chonburi province.

 

The operation on Thursday uncovered significant environmental breaches, including the presence of undocumented migrant workers and the illegal import of over 1,600 tonnes of aluminium scrap contaminated with electronic waste.

 

Akanat Promphan, Minister of Industry, disclosed on Thursday that the Ministry had coordinated closely with the NRECD, under the direction of Pol Maj Gen Watcharin Phusit, Commander of NRECD.

 

The NRECD had secured a search warrant from the Chonburi Provincial Court to inspect Metal Central Co., Ltd., located within the Free Zone area of Nong Hiang sub-district, Phanat Nikhom district, Chonburi.

 

Acting on intelligence regarding numerous legal infractions, the Minister assigned Thitiphat Chotdechachainan, head of the Minister of Industry's working group and leader of the Ministry's "Team Sud Soi" (meaning "thorough inspection team"), alongside the Department of Industrial Works (DIW), to join NRECD officers in the operation.

 

 

Representatives from the Chonburi Provincial Governor's Office and the Chonburi Provincial Industry Office were also present.

 

Akanat stated that initial reports indicated officers discovered multiple offences across various laws, including illegally operating a business, unauthorised expansion of machinery, unlawful possession of hazardous substances, discharging untreated wastewater into natural water sources, and employing undocumented labour.
 

 

 

For offences falling under the Ministry's purview, he confirmed that the established policy dictates the immediate use of legal powers to halt any illegal activities or those impacting the public.

 

He further stressed the importance of swift and decisive legal action, along with extending investigations into other related offences or potential organised crime activities, particularly within Free Zones.

 

Information suggests that these special tax-exempt areas, intended to benefit the national economy through customs duty advantages for legitimate businesses, are being exploited for illicit activities.

 

 

"The use of free zones, which come with tax benefits, does not imply exemption from other Thai laws. Transnational companies committing these offences fall under the 'zero-dollar industry' category – businesses that bring no benefit to Thailand but instead create pollution and destroy environmental resources. We must prosecute them decisively and eradicate them from Thailand as quickly as possible," Akanat declared.

 

Thitiphat reported that investigations revealed Metal Central Co., Ltd. was registered as a business selling finished plastic products and was authorised to use the free zone for its operations.

 

However, the company had illegally leased out warehouse space for factory operations, with Thai brokers reportedly acting as intermediaries, handling paperwork, liaising with government agencies, and coordinating with Chinese investors to rent the space.
 

 

 

During the inspection of four warehouses across five buildings, the following violations were uncovered:

Beta Package Products (Thailand) Co., Ltd. was found leasing space for the production of boxes and envelopes, and possessed plastic injection moulding machines. Whilst it held a valid factory permit, it had not yet notified officials of the commencement of its operations, constituting illegal operation. Furthermore, it had expanded its machinery capacity beyond what was permitted. Officers immediately seized the machinery and initiated legal proceedings.

Cat Metal International Co., Ltd. was found leasing the remaining warehouse space and machinery without a factory permit. The company was employing undocumented migrant workers to sort contaminated aluminium scrap, electronic circuit boards, plastic waste, rubber scrap, and dust. Officers seized a total of over 1,600 tonnes of these materials. The factory supervisor admitted that the sorted aluminium was destined for China, while the destination for the electronic circuit boards could not yet be identified.

 

 

 

Plastic waste, rubber scrap, and dust were being ground down and stored in large bags, piled behind the factory.

 

Officials immediately ordered the cessation of operations and initiated legal action against both Metal Central Co., Ltd. (as the warehouse owner) and Cat Metal International Co., Ltd. (as the importer) for establishing and operating a business without permission, as well as for unlawful possession of hazardous substances.

 

Officers also discovered that the factory had illegally connected a wastewater pipe directly from the premises to a public water source.

 

The Nong Hiang Subdistrict Administrative Organisation, the local authority, immediately ordered the discharge to cease and initiated legal proceedings under public health and environmental laws.

 

The DIW's Pollution Research and Warning Centre for the Eastern Region collected samples of the shredded plastic and rubber scrap in the large bags, along with water samples, for testing.

 

Should heavy metal contamination be found, additional legal action will be pursued.

 

Furthermore, Customs officials overseeing the free zone immediately suspended Metal Central Co., Ltd.'s right to import goods into the free zone.

 

 

Immigration police also apprehended 14 undocumented migrant workers, who were arrested for prosecution and deportation.

 

Legal action will also be taken against their employers for violating laws concerning the employment of undocumented foreign workers.

 

This operation stemmed from a tip-off received via the NRECD hotline from a concerned citizen about a polluting factory. NRECD conducted surveillance until sufficient evidence was gathered, then obtained a search warrant and coordinated with Team Sud Soi for the integrated operation.