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Steel company shut down over allegations of producing substandard steel

Chuangxing Steel Incorporated, operating in Pampanga Province in the Philippines, has been shut down following an operation by authorities over allegations that it produced steel products that failed to meet national standards and violated environmental regulations.

Steel company shut down over allegations of producing substandard steel

According to media reports, three Chinese executives and one Filipino company official were taken into custody during the operation.

During a raid carried out by the National Bureau of Investigation (NBI) and police officers at the company's production facility in Barangay Navaling, operations were suspended on suspicion that the plant had been producing steel products that did not comply with Philippine national standards.

Authorities stated that the company is being investigated not only under the Philippine Consumer Act, but also under the Philippine Clean Air Act and the Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990. Criminal complaints have been filed against the four company officials for allegedly violating these laws.

Approximately 300 employees affected

The closure of the production facility is reported to have affected approximately 300 employees.

Magalang Mayor Maria Lourdes Lacson confirmed the closure during a flag-raising ceremony held at the municipal hall, stating that while the municipality supports investments and job-creating initiatives, all industrial companies must fully comply with laws designed to protect the environment and consumers.

Authorities stated that the investigation is ongoing and that the future of the facility will be determined following the completion of the review.

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