Sanyuan may take over tainted milk brand Sanlu
By Wang Qian | China Daily | Updated: 2008-09-27 07:32
Sanlu Group, at the center of the recent milk food contamination scandal, may go bankrupt and be taken over by Beiijng Sanyuan Food Co, according to media reports on Friday.
The baby formula produced by Sanlu has been found contaminated with melamine, leading to the deaths of four infants. About 53,000 children have fallen ill with various urinary problems including kidney stones after taking Sanlu milk food. About 13,000 infants are still being treated in hospitals as a result.
The company has recalled more than 10,000 tons of milk powder, involving more than 700 million yuan ($103 million) in refunds. It will also have to bear the medical expenses for those affected.
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