Guan Aiguo, secretary of the CPC Kunshan municipal committee, and Lu Jun, mayor of Kunshan, were both removed from their posts, state-run Xinhua news agency reported.
The central cabinet said 18 suspects in the case will be prosecuted and 35 officials will be punished according to the discipline code of the ruling Communist Party of China (CPC) or code of behavior for civil servants.
The blast on August 2 gutted a wheel hub polishing workshop in Kunshan, Jiangsu Province. Over 70 people were killed outright and 185 were injured.
The total death toll was stated to be 146, according to official data, Xinhua reported.
The blast was a production safety incident arising through dereliction of duty, according to a statement from the State Administration of Work Safety (SAWS) today.
Direct economic losses were estimated at 351 million yuan (57.3 million US dollars).
Some other companies involved in the blast will also be punished. Three company managers were arrested in August.
A preliminary investigation found that the explosion followed the ignition of excessive metal dust in the workshop.
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