China's Shandong Haili halts ECH ops after blast at upstream unit

27 August 2012 12:01  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Shandong Haili Chemical suspended production at its epichlorohydrin (ECH) plant at Zibo city after an explosion occurred on 25 August at a neighbouring hydrogen peroxide plant run by its supplier, industry sources said on Monday.

The hydrogen peroxide plant is run by Shandong Guojin Chemical.

The blast occurred at around 18:00 hours local time (10:00 GMT), killing one and wounding seven while two workers are still missing, according to industry sources.

Hydrogen peroxide is used in the ECH-making process.

The fire brought about by the blast was brought under control by the “early hours of the morning” on 26 August, sources added.

The cause for the blast is still under investigation and production at Shandong Haili’s ECH unit has also been suspended with no specific restart date, sources said.

Sources also added that this is expected to impact the current prices of ECH in the Chinese domestic market as Shandong Haili is the largest producer in China.

Author: Victor Shi and Jasmine Khoo

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