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No nod yet for milk powder items to sell

BEIJING-BASED Sanyuan is still awaiting approval to market milk powder products after its takeover of scandal-hit Sanlu Group, a Sanyuan manager said yesterday.

Liu Hongfeng, a milk production manager at Hebei Sanyuan Foods Co Ltd, a subsidiary of the Sanyuan Group, said a dozen types of liquid milk from the former Sanlu plants had been on sale under the Hebei Sanyuan name since last Friday.

The output of the liquid milk was more than 100 tonnes a day and was sold in Hebei, Henan and Anhui provinces, he said.

However, the company - which acquired Sanlu's facilities in Hebei's capital of Shijiazhuang - was still awaiting approval by the General Administration of Quality Supervision, Inspection and Quarantine to sell milk powder products, he said.

Powdered products, including baby formula, were the focus of a scandal in which milk was mixed with the industrial chemical melamine to make the protein content appear higher.

Sanyuan bought Sanlu Group, the dairy company at the center of last year's scandal, at an auction last Wednesday for 616.5 million yuan (US$90 million). It acquired Sanlu Group's core assets as well as one of Sanlu's subsidiaries, the Linhe Dairy.

Liu said the facilities for making adult formula powder had been running for 10 days with a daily output of 10 tonnes. But samples were still being inspected by the regulators.

Sanlu's production facilities for baby formula were still idle, he said.



 

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