APA Advisory - Liuyang Factory Explosion

December 5, 2019

SUBJECT:   Chinese Officials Halt Production in Wake of Accident

Many of you have already learned of a terrible accident that occurred yesterday in Liuyang, China and we wanted to forward information provided to us by Board member Cindy Cheung, Inter-Oriental Fireworks.

On December 4 at approximately 7:50 am, an explosion occurred at the Liuyang Bixi Fireworks Factory which damaged surrounding areas. It is our understanding that this factory produced match flash crackers and match head crackers. Details and updates continue to emerge; however media reports suggest at least 7 people were killed and over a dozen injured.

Chinese officials have begun their initial investigation to determine the cause of the accident.  

Following the accident, all factories in Liuyang were ordered to stop production until further notice. While production in Jiangxi province continues, some areas outside of Liuyang are also impacted and have been ordered to halt production as well.

We do not know how long the work stoppage will last, but due to the high number of fatalities, it is possible it could last for some time until investigations and factory inspections can be completed.

The 2020 Chinese New Year holiday will fall on January 25 and factories will close for work around mid-January. The early holiday coupled with the halt in production due to the accident will have a major impact on deliveries before and after the Chinese New Year. We urge APA members to contact their overseas suppliers to determine how their pending orders may be impacted.

Advisory #2019-28