(Yicai Global) Feb. 12 -- An explosion that occurred at the clethodim plant of leading Chinese herbicide maker Shandong Cynda Chemical's Northeast China unit yesterday has thus far claimed two lives, injured another 10 people, and resulted in the loss of contact with three others, the firm announced today. 

The firm's shares [SHA:603086] also felt the force of the blast, plunging to a nadir of CNY20.16 (USD2.89) during the day, though firming in the afternoon to close down 4.33 percent at CNY21.43. 

The subsidiary of the pesticide producer based in China's eastern Shandong province is Liaoning Cynda Chemical. Formed in 2017, the unit, which has CNY280 million in registered capital, mainly researches, makes and sells pesticides and their intermediates and preparations. The 3,000-ton clethodim plant, which started trial production in December has not yet reached full capacity. It remained open over China's recently ended Lunar New Year holiday.

All senior company executives have hastened to the accident scene in coastal Huludao, Han Enjuan, the company's securities affairs representative, told China Times.

Liaoning Cyanda realized a net profit loss of about CNY19 million in the first three quarters, the company's financial data show.

Safe production of hazardous chemicals is becoming more of a challenge amid the novel coronavirus epidemic. Liaoning's emergency response department called on chemical makers to strictly monitor all safety risks in the course of production in a notice posted to its official website yesterday. 

Clethodim is used to control grasses in soybeans, cotton, flax, peanuts, sunflowers, sugarbeets, potatoes, alfalfa and most vegetables, according to the website of Cornell University in the US.

Editor: Ben Armour