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At about 14 o'clock on March 21, an explosion occurred in a chemical park in Yancheng, Jiangsu. As of 3 am today, the explosion fire in Chenjiagang Chemical Industrial Park in Xiangshui, Jiangsu Province has been controlled. The specific situation remains to be further verified. It is understood that the main products of Tianjiayi Chemical Factory are dyes and pharmaceutical intermediates. The dye industry said that the impact of the accident on the dye industry is relatively direct, or lead to a shortage of supply of m-phenylenediamine, rising prices, and affect the price of dispersion and reactive dyes.

Industries such as dyes are affected

Tianjiayi's website shows that the company has 17,000 tons of meta-phenylene diamine, 2,500 tons of o-phenylenediamine, 1,000 tons of tris-hydroxymethylaminomethane and other chemical products. The main products are dyes, pharmaceuticals and other intermediate products.

According to the dye industry, the production of dye intermediates in northern Jiangsu accounts for about one-third of the country. Tianjiayi is one of the three core production plants for the dye intermediate m-phenylenediamine. Many companies in the industry have factories near the region.

In addition, the accident may lead to delays in the resumption of work in the dye and intermediate plants in northern Jiangsu, and companies in nearby industrial parks may be affected. Among them, in the case of continuous price increases, the yellow dye is expected to usher in price increases again.

Some companies are affected

Insiders pointed out that the incident park may be discontinued, which will affect the related chemical sub-sector. Fang Shaoping (a pseudonym), a senior chemical company in the same incident, told reporters that the Chenjiagang Chemical Industry Park (now renamed Xiangshui Ecological Chemical Park) has more than 30 enterprises. The park enterprises mainly produce pesticide intermediates, followed by pharmaceutical intermediates. Among them, the larger company is Jiangsu Lianhua, a subsidiary of Lianhua Technology. “Jiangsu Lianhua’s factory, which has been in trouble, has also been damaged by Lianhua’s own factory.”

Fang Shaoping said that the Chenjiagang Chemical Industry Park had undergone a large-scale suspension of production and rectification last year. Only 5-6 companies were allowed to resume production in the second half of last year, including Tianjiayi Company.

Fang Shaoping pointed out that the overall size of the Chenjiagang Chemical Industry Park is limited, and it is expected that the impact on the entire industry will not be too great, mainly affecting the supply of bifenthrin. “If the entire chemical park in Jiangsu is affected, at least half of the country’s pesticide production will be affected.”

It is found that Chenjiagang Chemical Industry Park involves two listed companies and a new three-board company, including Lianhua Technology Subsidiary Jiangsu Lianhua and Yancheng Lianhua, Jacques Technology Subsidiary Yancheng Jac and New Third Board Company Yingtai Biological Subsidiary Southern Chemical .

Jiangsu Lianhua is the main force of Lianhua Technology's revenue. In the first half of 2018, Jiangsu Lianhua achieved revenue of 668 million yuan and net profit of 57.103 million yuan. Yancheng Lianhua achieved a revenue of 146 million yuan and a net profit loss of 52.83 million yuan.

Yancheng Jac is mainly engaged in foaming agent H (DPT), tris-(chloroisopropyl) phosphate, tris(1,3-dichloropropyl) phosphate, bisphenol A bis(diphenyl phosphate), Production and sales of benzenediol bis(diphenyl phosphate), triethyl phosphate and triphenyl phosphate.

Dongyang Laichi Environmental Protection Technology Co., Ltd. is a well-received non-woven fabric manufacturer, specializing in production and sales: nonwoven fabrics, elastic nonwovens, spunbond non-woven fabrics, medical nonwovens.