The blast occurred at Madian Gangue Power Generation Co Ltd in Dangyang City on Thursday, China'sState Administration of Work Safety said.
Preliminary probes showed it was caused by a broken high-pressure steam pipe when workers were testing thermo-power facilities.
The plant and neighbouring companies have been closed and a work safety overhaul has been launched in the city, state-run Xinhua news agency reported.
The administration has sent a work group to oversee the operation and conduct an investigation.
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