Stellite Released The Investigation Report On 727 Explosion Accident, Fined 480,000 Yuan

Nov 24, 2020

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On November 19, Stellite released the investigation report on the explosion accident in Xianju Modern Industrial Cluster ("Xianju Plant") at the end of July. The accident investigation team determined that the direct cause of the explosion was the production equipment in the workshop where the accident occurred. Due to exceeding the service life, it was decided to impose an administrative penalty of 480,000 yuan on Si Taili.


At 19:10 on July 27, Stellite's crude iohexol production workshop in the Xianju plant area exploded and caused a fire. The accident caused the death of two seriously injured people, two people were slightly injured, and the remaining two people were evacuated safely. Affected by this, the Xianju plant started to stop production for self-inspection. Stellite predicts that it will have a direct impact on the production of iohexol raw materials in the Xianju plant.


Stellite said that after the accident, the company immediately organized fire fighting and notified local fire, safety supervision, environmental protection and other departments. The fire was basically under control at about 19:40 that day. After monitoring by the environmental protection department, there was no substantial impact on the surrounding environment, and there was no abnormality in the river course around the accident site.


According to the investigation report issued by the accident investigation team led by Xianju County Emergency Management Bureau, the direct cause of this explosion accident was that the production equipment in the workshop where the accident occurred exceeded the service life and failed during the production process, resulting in crude iohexol n-butyl The alcohol solution leaked to the ground of the workshop, formed an explosive mixture with air, and flashed after encountering an ignition source, which was identified as a general production safety responsibility accident. The investigation team believes that Stellite's main responsibility for production safety is not in place, and he is responsible for the accident for failing to conduct regular maintenance, maintenance and periodic testing of equipment, and decides to impose an administrative penalty of 480,000 yuan on Stellite.


Iohexol is a water-soluble, non-ionic X-CT contrast agent. It is usually injected into a vein before CT diagnosis. It is used for angiography, urinary system, spinal cord, hip joint, and lymphatic system imaging. It has the advantages of low density, low toxicity and good tolerance. It is currently one of the best contrast agents. Developed countries have completely replaced ionic contrast agents with it.


In 2019, the operating income of Stellite Iohexol API was 360 million yuan, accounting for 27.49% of the company's overall operating revenue, and the gross profit generated was 132 million yuan, accounting for 23.52% of the company's overall gross profit.


The Xianju plant is the main production base of Stellite, which is mainly engaged in the production of iodine contrast agents and quinolone antibacterial drugs and intermediates. In 2019, the Xianju plant achieved operating income of 1.014 billion yuan, accounting for 77.51% of the company's consolidated operating income; realized a net profit of 150 million yuan, accounting for 82.25% of the company's consolidated net profit.


As of November 19, the production workshops of the iodine contrast agent series products in the Xianju factory have completed their self-examination and rectification and resumed production. Stellite stated that the company will further improve safety and environmental protection and other work management mechanisms, strengthen risk identification and hidden danger investigation and management, and establish a long-term mechanism for safety and environmental governance to prevent such safety production accidents.

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