February 29, 2012

Blast at vitamin E plant in Chongqing, China

A vitamin E production plant by Southwest Synthetic Pharmaceutical Corporation Ltd exploded last weekend in Chongqing, China.

Local authorities said a fire which followed the blast has since been brought under control. No casualties have been reported to date.

The explosion occurred in the workshop of Fangxin Fine Chemical Co Ltd which is located in the Jiangbei district of Chongqing. Fangxin Fine Chemical Co Ltd manufactures key intermediates used in the production of vitamin E oil and is a subsidiary of Southwest Synthetic Pharmaceutical Corporation Ltd.

The company is one of the smallest producers of vitamin E oil in the world. The global vitamin E market has been bearish in recent months and consequently most end users still have portions of their second and third quarters' requirements uncovered.

This incident is expected to prompt end users to immediately cover their forward needs and thereby instil a bullish tone to the global market.

Southwest Synthetic Pharmaceutical Corporation Ltd produces a broad portfolio of both bulk pharmaceuticals and preparation compounds through its GMP certified facility. Several products are approved by the FDA.

Southwest Synthetic Pharmaceutical Corporation Ltd claims to be the world's largest producer of both Lovastatin and Sulfonamides. The company has been quoted on the Shenzhen Stock Exchange since 1997.