Deadly blast at Chinese auto parts factory kills 69 workers
Reuters | 2014/8/3
BEIJING -- General Motors Co. said it had asked its main Chinese supplier to find an alternative source of components after an explosion ripped through a factory on Saturday killing at least 69 people.
The accident at the Zhongrong Metal Products plant in Kunshan city in the eastern province of Jiangsu was China's worst industrial accident in a year.
Aside from the fatalities, some 200 people were injured in the blast, state-run Xinhua news agency reported on Sunday, raising its casualty estimate from overnight.
According to Zhongrong's Web site, the factory made wheels that are supplied to GM and many other carmakers.
Distancing itself from Zhongrong, GM issued a statement that it bought parts from a company called Dicastal, which Zhongrong works with. GM added that it had no direct dealings with Zhongrong, which it described as a Tier 2 supplier.
Tier 1 component suppliers such as Dicastal are "required to source from Tier 2 suppliers who must meet both in-country environment and safety standards as well as quality standards," GM said.
GM noted that Saturday's accident did not cause any immediate impact on its production because it has a sufficient inventory of the parts, without specifying what the components were. "We are working with our supplier to establish alternate processing capability," the statement said.
The GM statement said it was too early to determine the cause of the explosion as an official investigation was underway. "We will closely monitor the investigation and, if asked, will provide any resources and information
that can assist in this matter," GM said.
The blast was reported to have taken place in a workshop that polishes wheel hubs. A preliminary investigation suggested it was triggered when a flame was lit in a dust-filled room, the local government said on Saturday, describing the incident as a serious safety breach.
Xinhua reported that police took at least two company representatives into custody.
GM described Dicastal as one of its global suppliers but did not provide any further information on the company.
Asked if Dicastal was Citic Dicastal Wheel Manufacturing, a producer of aluminualloy wheels headquartered in the eastern province of Hebei and a unit of Beijing-based Citic Group, a GM spokeswoman in Shanghai said she did not have any information.
She also said she had no information on whether GM conducts safety inspections of production facilities run by lower-tier suppliers.
