The shutdown of Dalian Port in northeastern China following a pipeline explosion is taking its toll on South Korean firms.

The Korea Trade-Investment Promotion Agency's branch in Dalian on Tuesday said that South Korean firms are facing enormous financial penalties for failing to deliver their orders on the due dates. The companies are also being forced to suspend operations, as imports of raw materials have been blocked.

There are about 800 South Korean firms operating in Dalian, 400 of which are trading with South Korea and other nations.

The shutdown first struck a blow to about 100 companies with heavy trade volumes, but more companies are expected to suffer if the closure continues.

Pipelines in Dalian exploded on July 16th near the city’s reserve base.