Liaoning Xianda has received an administrative penalty decision.

Release Date:

2020-07-11

On July 10, Shandong Xianda Agrochemical Co., Ltd. (hereinafter referred to as the “Company”) announced that its wholly owned subsidiary, Liaoning Xianda Agricultural Science Co., Ltd. (hereinafter referred to as “Liaoning Xianda”), had recently received an Administrative Penalty Decision issued by the Huludao Municipal Emergency Management Bureau.

On February 11, 2020, during the trial production phase at the isoxaflutole workshop of Liaoning Xianda, a major explosion occurred, resulting in five fatalities, ten injuries, and direct economic losses of approximately RMB 12 million.

The main contents of the Administrative Penalty Decision (Huludao Emergency Penalty [2020] No. 19001) are as follows: In this accident, Liaoning Xianda violated Articles 25, 38, and 41 of the Work Safety Law. Pursuant to Paragraph 2 of Article 109 of the Work Safety Law, an administrative penalty of a fine in the amount of RMB 1 million has been imposed.

The main contents of the Administrative Penalty Decision (Huludao Emergency Penalty [2020] No. 19002) are as follows: In this accident, Wang Xianquan, Chairman of Liaoning Xianda (who concurrently serves as the company’s Chairman), failed to adequately fulfill the safety production management duties prescribed in Articles 18(2), (3), and (5) of the Law on Work Safety, and thus bears significant responsibility for the occurrence of the accident. Pursuant to Article 92, Paragraph 2 of the Law on Work Safety, an administrative penalty of a fine in the amount of RMB 181,342.46 is hereby imposed.

Xian Da stated that the company will earnestly learn from the lessons of this incident, make every effort to strengthen its workplace safety management, further enhance safety awareness, strictly comply with relevant laws and regulations, and resolutely prevent the recurrence of such illegal incidents.

Source: Company Announcement

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