China's Sinopec plans to buy majority shares from petrochemical firm Dragon Aromatics, after suffering fire accidents

China's state owned energy giant Sinopec Corp is in talks to acquire majority of shares in the petrochemical firm Dragon Aromatics, which runs one of the country's biggest chemical plants.

In an exclusive report from Reuters, the plans to buy the petrochemical firm came after two major fire disasters hit the $3 billion Fujian plant in just a span of two years. Sinopec is said to buy 80 percent of Dragon Aromatics shares.

According to Global Times, one of the sources of the report said, local authorities urge Sinopec to intervene before letting the plant operate again. This only shows how Beijing is pushing for a stricter and better industrial safety standards.

The authorities also aim to protect the environment, after residents protest against plants in their area.

Plastic News reported that the Taiwanese-owned firm Dragon Aromatics has their plants in Zhangzhou, Fujian shut down April this year. This is due to the explosion in the plant that injured more than ten people, leading to the evacuation of 30,000 residents in the locality.

It took hundreds of firefighters, as well as chemical warfare soldiers to subdue the flame. China's State Administration of Work Safety blamed the construction bidding process, which chooses the "lowest-price" bidder to do the work.

The flawed plant design is another factor to blame. Beijing authorities set out a nationwide inspection on other plants that manufactures paraxylene, a chemical used to create polyester fiber and plastic. Paraxylene is the major chemical produced in Dragon Aromatics.

The firm has a yearly capacity of producing 1.6 million tons of Paraxylene.

Reuters continued to report that Chinese authorities have tightened the standards of industrial safety in the country after the devastating explosions in those plants.

Another deadly explosion was in August when a chemical warehouse in Tianjin port exploded, killing 160 people. Local officials in Fujian, including its vice mayor, were punished due to the complacent way operations are handled in the plants, which lead to the accidents.

Sinopec is a seasoned petrochemicals operator and may be fit for the job in ensuring the safety and environmental precautions these plants need.