Investigation Report and Recommendations for Handling the Explosion Incident at Liaoning Xianda Cyhalofop‑butyl Workshop Released

Shandong Xianda Agrochemical Co., Ltd. (hereinafter referred to as the “Company”) reported that its wholly owned subsidiary, Liaoning Xianda Agricultural Science Co., Ltd. (hereinafter referred to as “Liaoning Xianda”), experienced an explosion on February 11, 2020, resulting in five fatalities, ten injuries, and direct economic losses of approximately RMB 12 million. The incident occurred in the enoxyprop‑methyl production workshop, while other workshops were not significantly affected. On February 12, 2020, the Company disclosed the “Announcement Regarding a Work Safety Accident at a Wholly Owned Subsidiary” (Announcement No.: 2020‑001).

Recently, Liaoning Xianda received an official reply from the Huludao Municipal People’s Government regarding the “Investigation Report on the Major Explosion Accident of Liaoning Xianda Agricultural Science Co., Ltd. on February 11” (Document No. [2020]75 of the Huludao Municipal Government), and the company has issued a public announcement on the relevant matters.

According to the announcement, , the direct cause of this accident was : In the enesterone production unit, operator 1 failed to perform a double-check on the materials, and operator 2 mistakenly added both propionitrile and chloroamine simultaneously into chloroamine storage tank V1428. This resulted in a reaction between propionitrile and chloroamine within the tank, releasing heat and causing thermal accumulation. As a result, the material temperature gradually increased, the rate of exothermic reaction accelerated, and ultimately led to material decomposition and an explosion.

Indirect causes include: 1. Liaoning Xianda’s safety production regulations are incomplete, and their implementation is not standardized. 2. Liaoning Xianda’s emergency response mechanism for handling production abnormalities is inadequate. 3. Liaoning Xianda has failed to provide adequate safety education and training for its employees. 4. The division of responsibilities among management personnel in Liaoning Xianda’s mesosulfuron‑methyl workshop is unclear. 5. Liaoning Xianda has not effectively established or operated a dual-prevention system comprising risk control and hazard identification and remediation. 6. Relevant authorities have conducted insufficiently thorough and practical supervision and inspection of Liaoning Xianda’s safety production during the trial‑production phase, with weak oversight and inadequate guidance.

Following investigation and analysis, it has been determined that the “February 11” major explosion at Liaoning Xianda was a production safety liability accident. The accident investigation team hereby submits the following recommendations for disciplinary action against the company and the relevant persons held accountable:

1. In accordance with Article 109, Paragraph (2) of the Work Safety Law, it is recommended that the Municipal Emergency Management Bureau impose a fine of RMB 1 million on Liaoning Xianda.

2. One individual bears direct responsibility for the occurrence of this accident; however, given that he has already died in the accident, it is recommended that he be exempted from accountability.

3. It is recommended that criminal liability be pursued for five individuals (who, upon verification, are all employees of Liaoning Xianda and not senior executives of the listed company); it is also recommended that Liaoning Xianda impose disciplinary measures on four employees in accordance with its internal regulations.

4. In accordance with Article 92, Paragraph (2) of the Work Safety Law, it is recommended that the Municipal Emergency Management Bureau impose a fine on the principal person in charge and the legal representative of Liaoning Xianda, each equivalent to 40% of their annual income for the preceding year.

5. Following the accident, the Municipal Emergency Management Bureau has ordered Liaoning Xianda to immediately suspend production and business operations for rectification. Upon completion of the rectification, the Municipal Bureau of Agriculture and Rural Affairs and the Municipal Emergency Management Bureau, each taking the lead, shall engage experts—assisted by the Safety Supervision Bureau of the Huludao Economic Development Zone—to conduct a thorough, item-by-item inspection and verification of its safety production conditions. If the facility meets the required safety standards, the experts shall issue a clear, conclusive opinion; if it fails to meet such standards, it shall be ordered to continue rectifying. Should it still fail to comply after rectification, the matter shall be submitted to the municipal government for lawful closure, or to the licensing authority for revocation of its Pesticide Production License.

6. In accordance with the requirements of the “Notice of the Liaoning Provincial Administration of Work Safety on Issuing the Measures for Implementing Joint Punitive Measures Against Dishonest Conduct in the Field of Work Safety” (Liao Anjian Zhi Fa [2017] No. 4), production and business entities involved in major or above-level work safety accidents shall be included in the list of subjects subject to joint punitive measures. It is recommended that the Municipal Emergency Management Bureau collect relevant information from Liaoning Xianda and then submit it to the Provincial Emergency Management Department for review.

Liaoning Xianda stated that, since the accident occurred, the company has conducted a comprehensive self‑inspection and implemented corrective measures to address identified issues. Moving forward, it will continue to carry out thorough rectification in accordance with the requirements of the accident investigation report, striving to resume production and operations at the earliest possible date. At the same time, the company will earnestly learn from the lessons of this incident, take it as a cautionary tale, draw broader conclusions, and adopt decisive and robust measures to ensure workplace safety and prevent similar accidents from recurring.

Source: AgroPages (World Agrochemical Network)