(Yicai Global) April 11 -- Shares in Chinese daily chemicals maker Zanyu Technology Group slipped today after authorities in Jiangsu province said they were conducting safety inspections at a bunch of chemical parks in the wake of two deadly explosions last month.
Its stock [SHE:002637] closed down 4.7 percent at CNY8.8 (USD1.31).
Zanyu subsidiary Cata Chemical Technology suspended production at the Yangkou Chemical Park in Nantong city, Jiangsu, on April 9 to rectify issues, the parent said in a statement yesterday. It expects downtime to last at least 10 days and is unsure when it will resume operations.
The public has had a close eye on Jiangsu's chemicals industry since a March 21 explosion at Xiangshui Industrial Park killed 78 and injured hundreds, prompting authorities to shuw the park down on April 4. Just 10 days after the first blast, another in the region left seven dead.
Cata mostly makes chemicals used as a sizing agent in textiles. It earned CNY38 million (USD5.7 million) in net profit in 2017, on revenue of CNY1.7 billion (USD253 million), contributing around a quarter to its parent's totals that year.
Jiangsu authorities have also extended their probe to other parks. Regulators carried out an impromptu inspection at Nantong Economic and Technological Development Zone on April 9, according to state-backed newspaper Nantong Daily. Several companies at the zone, including refrigerator maker Ningbo Hicon International Industry, have also suspended operations.
Editor: James Boynton