Sanlu Group May Be Sold to Competitors

by Barbara McPherson | October 18, 2008 at 09:02 am

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Rival companies in the massive dairy market in the People's Republic may buy out the disgraced Sanlu Company. The melamine milk scandal has damaged the reputation of the New Zealand based company beyond repair.

Seven milk producers, including Sanyuan, Wahaha and new competitor Yili, plan to bid for Sanlu Group Co this weekend, the company shamed in last month’s milk scandal, according to today’s International Finance News.

Some other large dairy producers were also reported to have shown interest in the deal, including American-owned Feihe Dairy, southwestern Sichuan Province’s New Hope Group, and Wondersun.

The fallout from the marketing of the melamine poisoned milk and milk products worldwide has again focussed attention to China's poor record of maintaining world standards.With standards for maximum allowable melamine content now pegged at one part per million and tighter regulations on the milk industry now in place in China, this may soon see the end of this food scandal.

A comprehensive list of recalled products in this food scandal may be found at

nowpublic.com/health/recalled-melamine-milk-product-list-ongoing