Sanlu sunk?

October 17, 2008

The Shanghai Daily reports that Sanlu in which Fonterra has a 43% stake is “facing bankruptcy”.  

Industrial experts told the newspaper that it is unlikely a single company will be able to take over Sanlu as its debts total more than 700 million yuan ($NZ169 million) -not counting massive compensation claims.

Chinese newsagency Xinhua said yesterday that 5824 children were still receiving hospital treatment for kidney diseases caused by milk contaminated with melamine, and six children were in serious condition.

Macdoctor reckons Fonterra will have to put this down to experience.


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