Explosion at Shandong Chemical Plant Raises Suspicions — Company Involved in Multiple Lawsuits

An explosion occurred on May 27 at the factory of Youdao Chemical Co., Ltd. in Gaomi, Shandong. (Image from the internet)

[People News] At around 11:57 AM on May 27, an explosion occurred at the factory of Youdao Chemical Co., Ltd. in Gaomi, Shandong, drawing widespread attention. According to Chinese state media, the incident resulted in 5 injuries, 6 people missing, and 19 with minor injuries. However, some netizens claimed that local hospitals were overwhelmed. Others investigated the potential cause of the explosion and discovered that the company had been involved in multiple legal disputes. This has led to speculation online about whether there might be a darker backstory behind the blast.

Photos and videos circulating online show a devastating scene at the site of the explosion, with towering flames and thick yellow smoke filling the air, producing a pungent odour. The area resembled a living hell.

According to eyewitness Mr. Zheng, the explosion occurred around 11:50 AM while he was passing by. A sudden loud bang shook the area, and the shockwave nearly knocked him and his vehicle over. He immediately pulled out his phone to call the police.

Insiders revealed that the plant contains polymerisation tanks, which, if exploded, could have catastrophic consequences.

What caused the explosion? Netizens speculated that potential reasons include equipment failure (such as valve wear and leakage), human error, or mismanagement of hazardous chemicals in high temperatures. Some went further, suggesting there might be hidden scandals behind the incident.

Following the explosion, stock prices in the glyphosate and agrochemical sectors surged. One netizen commented that capital markets were reacting to the likelihood that Youdao Chemical’s temporary shutdown could affect the global supply chain of chlorantraniliprole.

Netizens also revealed that Youdao Chemical had been involved in several legal disputes, including cases of patent infringement, personal injury liabilities involving labourers, and labour contract disputes.

One person posted online that Haomai (the parent company) had owed them 4,300 yuan in freight fees for over two years, raising concerns about mismanagement. Others speculated that the company might be behind on paying its workers.

Some questioned how a wealthy and powerful company could fail so badly in safety management.

According to the company’s official website, Shandong Youdao Chemical Co., Ltd. is a subsidiary of Haomai Group Co., Ltd. It was established in August 2019 and is located in the Renji Chemical Industrial Park in Gaomi, Weifang, Shandong Province. The facility spans over 700 acres and has a registered capital of 1 billion yuan. With over 300 employees, the company focuses on the development, production, and sales of continuous-flow technology for pesticide, pharmaceutical, and related fine chemical intermediates.

Public data shows that Haomai Technology earned 2 billion yuan in net profit last year and 520 million yuan in the first quarter of this year alone, with a market value of 48.1 billion yuan. Its owner, Zhang Gongyun, has a personal fortune of 13 billion yuan and was ranked 2,081st on the Hurun Rich List this March.