3 Dec 2008

Tainted milk scandal company selling product again

6:07 pm on 3 December 2008

The Chinese dairy company implicated in the toxic milk formula scandal, which is partly owned by Fonterra, is reported to be selling its dairy products in China again.

China this week raised to six the number of babies believed killed from drinking toxic milk formula and said the number made sick was 294,000.

Sanlu, which is 43% owned by New Zealand dairy co-operative Fonterra, was forced to stop sales after milk powder was found to be contaminated with melamine, a chemical used in some plastics.

As a result of the fallout, Fonterra has been forced to write off most of its investment in Sanlu.

Radio New Zealand's correspondent in Beijing says Sanlu and other milk companies' products are on the market again following a Government campaign to assure consumers that milk products are now safe.