Chinese industry to see tough safety norms as another fire takes place at drug firm

By PharmaCompass

2019-04-18

Impressions: 107 Article

Just last month, PharmaCompass had reported a chemical blast in eastern Jiangsu province in China that had killed 78 and left hundreds injured. This week, China saw yet another incident wherein 10 people suffocated to death by smoke inhalation at a large Chinese pharmaceutical firm in Jinan city.

According to news agency Xinhua, sparks from a pipe being welded at Qilu Tianhe Huishi Pharmaceutical Company in eastern Shandong province caused a substance to catch fire, giving off smoke. Twelve rescue workers were hurt but were not in a life-threatening condition, it added. The accident is being investigated.

Qilu Tianhe had invested US$ 150 million (1 billion yuan) in its 280,000 square meter pharmaceutical plant situated in Jinan. The company exports medicines to Europe, North and South America, and the Middle East.

Deadly industrial accidents are common in China, where safety regulations are often poorly enforced. Prior to last month’s incident in Jiangsu, in November 2018, a gas leak at a plant in the northern city of Zhangjiakou (which was among the host locations for the 2022 Winter Olympics) had killed 24 people. In December 2018, a laboratory blast had taken place at Beijing University, killing three students. And in July 2018, a chemical plant in south-west Sichuan province had left 19 dead and 12 injured.

Meanwhile, the Chinese government at both the central and local levels is expected to introduce tough regulations that may lead to closure of many small plants and prompt consolidation within the industry.

According to news reports, authorities have moved swiftly in recent days to take remedial measures aimed at eliminating safety risks, including special safety inspections and the closure of some companies and even entire industrial parks.

This week, the State Administration for Market Regulation (SAMR) announced it would launch special rectification efforts for high-risk areas that may have systemic safety issues, including food packing and chemical products. The efforts will focus on improving accountability for safety loopholes and enhancing oversight and regulation of companies, according to the SAMR.

According to media reports, the Jiangsu provincial government plans to shut down as many as 30 industrial parks that house chemical plants and close thousands of companies. Jiangsu is one of the largest bases for chemical industries in China. In 2017, it had more than 5,400 such companies that generated more than 2 trillion yuan (US$ 297.64 billion) in revenue.

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“ The article is based on the information available in public and which the author believes to be true. The author is not disseminating any information, which the author believes or knows, is confidential or in conflict with the privacy of any person. The views expressed or information supplied through this article is mere opinion and observation of the author. The author does not intend to defame, insult or, cause loss or damage to anyone, in any manner, through this article.”

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