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473:", aired on 2 September 2007, and focused on the company. It claimed over 1,000 different tests were carried out before its products leave the factory. To that end, on 8 January 2008, it was awarded second prize at the 2007 National Scientific Techniques Awards in the category of 'Innovative infant formula research and other related techniques'. A number of its products were exempt from government inspection for having passed government quality checks three times in succession. Sanlu is one of the largest employers in
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637:
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recall and the impairment of the 'Sanlu' brand "as a direct consequence of the criminal contamination of milk in China". Chairman Henry van der Heyden said that the contamination was a criminal act which
Fonterra could not have prevented. On 26 September, Fonterra CEO denied that Fonterra is selling its stake of 43% of Shijiazhuang Sanlu Group Co.
464:
In 2007, its sales reached ¥10 billion. Milk powder sales of the group ranked number 1 for 15 consecutive years, with a market share of 18 percent. The company prided itself on its stringent quality control procedures, boasting its extremely rigorous tests on its products. "Made in China", a special
452:
with an annual capacity of 200,000 tons of powdered milk. At the time of signing the joint venture contract with
Fonterra, the company declared it would invest 3 billion yuan for external growth, to form a national industrial network over the next three years. In April 2006, Sanlu acquired a liquid
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to children affected by tainted powdered milk it produced. It was announced on 25 December that
Shijiazhuang court accepted a creditor's bankruptcy petition against Sanlu, which reportedly had net debt of ¥1.1 billion. Shijiazhuang city, the controlling shareholder, hopes to sell its distribution
599:
Four Sanlu executives went on trial on 31 December 2008 charged with producing and selling fake or substandard products. Tian Wenhua, former general manager, former deputy general managers Wang
Yuliang and Hang Zhiqi, and Wu Jusheng, a former head of Sanlu's milk division appeared in court. Tian
558:
Since Sanlu, the region's largest purchaser of milk, was ordered to halt production, many small dairy farmers were put into hardship. On 24 September, Fonterra announced that it had written down the carrying value of its investment by NZ$ 139 million (two-thirds), reflecting the costs of product
510:
was allegedly only alerted to the contamination on 2 August. There was no immediate trade recall. Fonterra said that local administrators refused an official recall. Fonterra notified the New
Zealand government on 5 September after the scandal had already hit the Chinese press and after Fonterra
592:
611:, while other Sanlu executives received sentences of five to fifteen years. Two other men were sentenced to death. Tian was also ordered to pay a fine of 20 million yuan (US$ 2.9 million). Despite its bankruptcy, Sanlu was fined 50 million yuan ($ 7.3 million).
394:
The company began as
Shijiazhuang Dairy Company (SDC) on 16 February 1956. After several acquisitions in 1995, Sanlu Group was formed in 1996. Tian Wenhua, then general manager of SDC, became President and general manager of Sanlu. Under Tian, Sanlu led the Chinese
555:. Four Shijiazhuang officials, including vice mayor in charge of food and agriculture, Zhang Fawang, were reportedly removed from office. Mayor Ji Chuntang reportedly resigned on 17 September; Tian was charged under Articles 144 and 150 of the criminal code.
457:, Shandong, capable of producing 300,000 tons of liquid milk every year, at an outlay of 400 million yuan. In October of the same year, the company invested in a production facility with a capacity of 100,000 tons of lactic acid bacteria drink and yoghurt in
604:'s standards on melamine. Wang, who had leaped off a building in a suicide attempt, offered his apology and remorse: "When I think of the children who were harmed... I feel extreme inadequacy towards these sick children and their parents."
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market for 13 consecutive years in terms of sales. Tian was considered one of the most successful entrepreneurs in China for her role in building the company. She was named deputy chairman of the China Dairy
Industry Association
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On 15 September, the company issued a public apology for the contaminated formula; Sanlu was ordered to halt production, and to destroy all unsold and recalled products. Authorities reportedly seized 10,000 tons of product.
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said that all 11 samples from Sanlu failed the melamine test. Sanlu, whose products sell at half the price of equivalents on the market, recorded the highest levels of contamination among
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and other complications. It received a bankruptcy order from
Shijiazhuang Court on 24 December 2008, and several of its top managers were sentenced to long prison terms.
415:
1581:
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In
September 2008, Sanlu came to international attention due to product concerns regarding its infant formula, which was discovered to have been contaminated with
413:
Sanlu became
Shijiazhuang's largest taxpayer since it had become the largest formula seller in China for a continuous 15-year period. Richard McGregor, author of
527:
695:. Retrieved 12 October 2012. "Shijiazhuang Sanlu Group Co Ltd No.539, Heping West Road, Xinhua Di Shijiazhuang, 050071 China" – making it "中国河北省石家庄市市和平西路539号"
419:, said that Sanlu became "an invaluable asset for a city otherwise struggling to attract industry and investment on a par with China's premier metropolises."
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In November, it was announced that the Sanyuan Group would acquire 4 of Sanlu's Shijiazhuang plants, and plants in Tangshan, Shandong and
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864 million. The joint venture company started trading in 2006. The majority 56% stake is owned by Shijiazhuang Three Deers Limited (
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Sanlu Group executives Tian Wenhua, Wang Yuliang, Hang Zhiqi and Wu Jusheng, wearing yellow vests, stand trial on 31 December 2008.
499:, a non-alimentary chemical which causes kidney stones. An estimated 300,000 babies became ill, and six cases resulted in death.
575:, and would assume some of Sanlu's debt. Consideration was not disclosed, but sum is said to be of the order of ¥800 million.
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had Beijing officials alerted directly. Clark accused the company and officials of covering up to avoid an official recall.
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pleaded guilty to her role in the scandal, and expressed her remorse, and also called for China to consider embracing the
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Administration of Quality Supervision, Inspection and Quarantine announces list of enterprises involved in Melamine milk
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On 27 September 2008, China Economic Net reported that Sanlu may have been bankrupted and soon be taken over by
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After testing samples from 491 batches of products sold by all 109 companies producing baby formula, the
378:, affecting some 294,000 Chinese infants and killing six. Their infant formula had been adulterated with
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reported that Sanlu received its first complaints about baby formula in December 2007.
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was stripped of her party and functional posts during an extraordinary meeting of the
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On 19 December, Sanlu secured a loan of ¥902 million to pay medical expenses of and
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CCTV In-depth report: Sanlu powder undergoes thousand tests before leaving factory
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410:. The company was a collective; managers and workers both owned shares of Sanlu.
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Government does not own stake in Sanlu; Sanlu Group responsible for cover-up
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Companies that have filed for bankruptcy in the People's Republic of China
1417:
Oster, Shai; Chao, Loretta; Leow, Jason; Zhang, Jane (27 September 2008).
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National Administration of Quality Supervision, Inspection and Quarantine
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Klaudia Lee, "Tests find tainted baby milk at 21 more firms", Page A1,
78:
1289:"Officials, company manager sacked following baby milk powder scandal"
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In December 2005, a joint venture agreement was signed which involved
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Chinese milk powder contaminated with melamine sickens 1,253 babies
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Klaudia Lee, "NZ alerted China to tainted milk, PM says", Page A1,
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Raymond Li, "Censorship hammer comes down over scandal", Page A5,
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Death toll rises to four in tainted baby formula scandal in China
1052:"Sanlu liquid milk back on Chinese market after melamine scandal"
579:
454:
1355:
1261:"China Revokes 'Inspection-Free' Right as Milk Scandal Spreads"
1085:"Chinese Baby Formula Scandal Widens as 3 Deaths Are Announced"
1419:"Fonterra: Not Contacted About Sanlu Stake Sale By JASON LEOW"
1230:"China seizes 22 companies with contaminated baby milk powder"
1302:
China Revokes `Inspection-Free' Right as Milk Scandal Spreads
911:[Fonterra acquires 43% in Sanlu Group, IPO planned].
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taking a 43% equity stake in the Chinese dairy by injecting
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359:. It produced one of the oldest and most popular brands of
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directors left China. Three days later, Prime Minister,
852:
The Party: The Secret World of China's Communist Rulers
745:
Sanlu, company in China milk scandal, declared bankrupt
416:
The Party: The Secret World of China's Communist Rulers
1493:"China milk exec faults lack of rules, awaits verdict"
1356:
Michael Field & Andrew Janes (24 September 2008).
1217:"China to destroy 10,000 tons of tainted baby formula"
1054:. Xinhua News Agency. 13 November 2008. Archived from
708:
Sanlu decides to recall melamine-contaminated product
318:
245:
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448:
In February 2006, the group opened a dairy plant in
881:"Fonterra And San Lu Reach Joint Venture Agreement"
1416:
408:Chinese People's Political Consultative Conference
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749:
480:
1528:
1444:"Sanyuan may take over tainted milk brand Sanlu"
1334:China's dairy farmers fret as milk scandal grows
406:), and elected to the National Committee of the
1582:Food and drink companies disestablished in 2008
1275:, China Central Television (16 September 2008)
477:, with close to 10,000 people on its payroll.
915:(in Chinese). 2 December 2005. Archived from
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543:), Chairman and general manager of Sanlu and
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247:Shíjiāzhuāng Sānlù Jítuán Gǔfènyǒuxiàngōngsī
1475:"Sanlu in $ 160m debt, assets up for grabs"
1029:How Sanlu won the national technology award
545:Chinese Communist Party Committee Secretary
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823:The Sanlu Trial: Diary of a Dairy Disaster
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607:On 22 January 2009, Tian was sentenced to
1346:
1318:MD of Sanlu detained for criminal charges
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1117:
491:Timeline of the 2008 Chinese milk scandal
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374:In September 2008, it was involved in an
1577:Chinese companies disestablished in 2008
1552:Defunct manufacturing companies of China
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1111:China launches crack-down on export milk
1074:, Xinhua News Agency (18 September 2008)
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791:"Death Sentences in Chinese Milk Case"
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1572:Chinese companies established in 1956
1358:"Fonterra takes 69pc SanLu writedown"
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551:provincial standing committee of the
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670:Chinese protein export contamination
1450:. 26 September 2008. Archived from
1394:. 24 September 2008. Archived from
956:Sanyuan to buy 7 Sanlu dairy plants
716:
710:, news.163.com (11 September 2008)
13:
1388:"China scandal hits Fonterra hard"
1291:, chinaview.cn (16 September 2008)
1232:, chinaview.cn (16 September 2008)
1219:, chinaview.cn (15 September 2008)
1157:"Toxic milk toll rockets in China"
789:Barboza, David (22 January 2009).
725:"Chinese dairy exports in decline"
14:
1598:
1537:Dairy products companies of China
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569:Beijing Sanyuan Food Company Ltd.
376:adulterated powdered milk scandal
1506:Chinese milk scam duo face death
1320:, Hebei.com (17 September 2008)
1181:Jane Macartney & Sophie Yu,
958:, China.org.cn, 18 November 2008
649:
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1562:Companies based in Shijiazhuang
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1473:Sharon Lee (26 December 2008).
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1125:The poisoning of China's babies
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723:Hogg, Chris (2 December 2008).
689:Shijiazhuang Sanlu Group Co Ltd
461:, Henan, for 120 million yuan.
1364:. South Africa. Archived from
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481:Milk powder scandal and demise
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940:, Xinhua (3 September 2008)
583:network as a going concern.
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849:McGregor, Richard (2012).
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1547:2008 Chinese milk scandal
1340:26 September 2008 at the
1015:央视《每周质量报告》“中国制造”首推三鹿婴幼儿奶粉
999:24 September 2008 at the
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1247:South China Morning Post
1203:South China Morning Post
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909:"新西兰恒天然购三鹿43%股份 合资公司欲上市"
453:milk production base in
211:Traditional Chinese
1423:The Wall Street Journal
828:22 January 2009 at the
553:Chinese Communist Party
197:Simplified Chinese
1495:. CNN. 2 January 2009.
693:Bloomberg Businessweek
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528:all the samples tested
471:Quality Reports Weekly
390:Ownership and business
355:, the capital city of
1392:Stuff (Fairfax Media)
1308:, (17 September 2008)
1034:15 March 2009 at the
594:
337:Sanlu Group CO., Ltd.
1398:on 24 September 2008
665:Food safety in China
371:owned 43% of Sanlu.
1368:on 24 December 2008
1250:(17 September 2008)
1206:(16 September 2008)
1191:(16 September 2008)
1163:. 15 September 2008
1146:(16 September 2008)
1091:. 17 September 2008
1058:on 12 January 2009.
919:on 19 December 2006
587:Trial of executives
23:
795:The New York Times
767:. 24 December 2008
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504:Xinhua News Agency
426:dairy cooperative
382:, which can cause
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889:. 2 December 2005
866:978-0-06-170876-3
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609:life imprisonment
347:company based in
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