Two people were killed and another five were severely injured in an explosion in a private chemical company in Shouguang, a city in east China's Shandong Province.

An official with the city work safety supervision bureau said that the accident occurred at 9:50?AM on Sunday, when 18 workers were at the site. One person died at the scene, six others were severely injured, and one of them died on the way to hospital.

The official said that the five injured are still in critical conditions. The private enterprise is engaged in fire retardant production.

Leaders of Shouguang city rushed to the accident site to help with the rescue work and an investigation is underway into the cause of the accident.

(Xinhua News Agency March 21, 2006)