Scandal-Tainted Sanlu Files for Bankruptcy

BEIJING — Sanlu Group, the company at the center of China's tainted infant formula scandal, has filed for bankruptcy.

Markets withdrew Sanlu milk powder in September after melamine was found as an additive.

A court in Shijiazhuang, China, where the company is based, told CNN Wednesday it has received the bankruptcy application.

Baby formula produced by Sanlu — previously one of China's leading dairy producers — was first flagged in the scandal when it recalled about 700 tons of the powdered milk in September after discovering the product was contaminated with melamine.

The poisonings killed six babies and sickened 290,000 others, according to China's Xinhua news agency.

Sanlu could be taken over by Beijing Sanyuan Food Company or Wandashan Dairy, Xinhua reported.

Chinese investigators found melamine in nearly 70 milk products from more than 20 companies, according to then-quality control official Li Changjiang, who was forced to resign.

Thousands of tons of tainted milk powder were recalled, including pullbacks by Mengniu Dairy Group, China's largest milk producer, and Sanlu.

In addition to Li's ouster, the fallout from the scandal led to arrest of at least 18 people in September and new government safety measures.

Source: CNN