- The Washington Times - Monday, April 20, 2009

BEIJING (AP) - The Chinese dairy that bought the company at the heart of a tainted milk scandal that sickened hundreds of thousands of children has launched a new line of milk powder products, state media reported Tuesday.

The new products are manufactured by Hebei Sanyuan Foods Co. Ltd., a subsidiary of the Beijing Sanyuan Foods Co. Ltd., which bought the core assets of the now-bankrupt Sanlu Group Co., the official Xinhua News Agency said.

Sanlu was one of a handful of companies whose products were found tainted with melamine, an industrial chemical used in the manufacture of plastics and fertilizer that was added to watered-down milk to artificially boost protein content. The milk was blamed for the deaths of six babies and urinary problems in nearly 300,000 others last year.

Beijing-based milk company Sanyuan Group bought Sanlu’s core assets at an auction in early March for 616.5 million yuan ($90 million). Sanyuan’s products were found to be safe, and the company has said it would use its unscathed reputation to improve its position in the market.

Its milk powder line _ for adults, children and infants _ will be distributed in 13 provinces and cities across China, Xinhua reported.

Sanlu was declared bankrupt in February and a court ordered the auction of its real estate holdings, buildings, equipment along with its investment rights and interests in other dairy companies from March 4. An auction last week failed to sell its last remaining assets.

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