XI'AN - Police in the northwestern province of Shaanxi said that a fatal blast on Monday was caused by the illegal production and storage of explosives.

Fourteen people died, 147 sustained injuries and many buildings were damaged in the explosion that began in a group of five prefabricated houses around 2 pm Monday in Xinmin township, Fugu county, Yulin city.

Among the injured, 106 remain in hospital and 41 have been discharged.

The Ministry of Public Security sent a work team to the scene Tuesday morning to assist the investigation. Three suspects were arrested early Tuesday morning. All three confessed their guilt.

The five prefabricated houses were completely destroyed by the blast. The explosion also damaged 58 nearby houses and 63 cars.

The prefab houses were rental properties. The owner of the houses is in police custody and an investigation is under way.

All people in the surrounding area have been evacuated. The police are still investigating the cause of the detonation.

The provincial government has also launched an inspection into the illegal production, storage and use of explosives across the province.