Explosion at Youdao Chemical, a chlorantraniliprole producer

On May 27 at around 11:57 a.m., an explosion occurred in a workshop of Shandong Gaomi Youdao Chemical Co., Ltd. (hereinafter referred to as "Youdao Chemical"). As of the evening of May 27, the accident had resulted in five deaths, six people missing, and 19 people with minor injuries.

Public information shows that Youdao Chemical was established in August 2019 and is a subsidiary controlled by Himile Group Co., Ltd. The company focuses on highly efficient and low-toxicity pesticides and their dedicated intermediates. Its main products currently include chlorantraniliprole and its intermediates. The company's plant protection phase II 10,000-ton chlorantraniliprole device was successfully put into production in January 2024, and the total capacity of chlorantraniliprole is 11,000 tons (project declaration).

According to an incomplete statistics by AgroPages from public information sources such as government environmental assessment websites and announcements from investment and construction enterprises, as of February 2025, the declared production capacity of chlorantraniliprole in China has exceeded 130,000 tons. The main investment and construction enterprises include Youdao Chemical (11,000 tons/year), Hubei Yilihong Chemical (30,000 tons/year), Zhejiang Zhongshan Chemical (20,000 tons/year), Inner Mongolia Miraculous Crop Science (20,000 tons/year), Anhui Guangxin Agrochemical (7,000 tons/year), FMC (Shanghai) (6,000 tons/year), and Nanjing Red Sun (2,000 tons/year), etc. The industry generally has a positive outlook on the market prospects of chlorantraniliprole.

According to securities firm forecasts, the explosion at Youdao Chemical may affect 40% - 50% of its actual chlorantraniliprole production. In response to the impact of the incident, several related listed pesticide companies were interviewed. Hailir said that the company had previously planned to produce chlorantraniliprole, but it has not been put into actual production yet. The progress of the project and the specific completion time are still uncertain, and the impact of the related accident on the company is limited.

Red Sun confirmed that it currently produces 2,000 tons/year of chlorantraniliprole, and another 1,000-ton project under construction is expected to be completed by the end of September this year. The related accident may objectively affect the company's product sales.

Lier Chemical responded that the company has a layout in chlorantraniliprole, but it cannot provide specific production capacity and sales figures at present. The company's customers are relatively stable. Regarding the impact of the related accident, Lier Chemical said that the company will focus on its own production and operation.

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