Seven people died and four others were injured in a factory fire in Weifang, Shandong province, on Monday morning, a government official said.

The fire broke out around 9 am at Shandong Rike Chemical Co in Changle county. The cause is under investigation.

The company, which was established in 2003, is a wholesaler of compressed and liquefied gas, including butadiene, styrene and ethyl acrylate, all of which are highly flammable.

As of November, 203 incidents in the chemical industry this year have killed 238 people, according to the State Administration of Work Safety.

All companies nationwide that deal with hazardous chemicals will be inspected by the end of the year to ensure safety, the watchdog said.

According to the administration, there are more than 300,000 such companies in China, of which more than 80 percent engage in poor safety practices.

Wang Haoshui, chief engineer for the administration, said that lessons should be learned and steps should be taken to curb chemical accidents.

The administration said there are still some significant safety problems in the manufacture and storage of flammable or explosive chemicals. Local governments should maintain strict oversight, and enterprises should establish safe procedures, it said.

Ju Chuanjiang contributed to this story.