State Owned | |
Industry | Dairy products |
Founded | 1995 |
Defunct | 2008 |
Headquarters | Shijiazhuang, Hebei, China |
Area served
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China |
Key people
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Zhang Zhenling (Chairman) |
Products | Milk, infant formula, powdered milk |
Website | wayback |
Sanlu Group | |||||||
Simplified Chinese | 石家庄三鹿集团股份有限公司 | ||||||
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Traditional Chinese | 石家莊三鹿集團股份有限公司 | ||||||
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Transcriptions | |
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Standard Mandarin | |
Hanyu Pinyin | Shíjiāzhuāng Sānlù Jítuán Gǔfènyǒuxiàngōngsī |
Sanlu Group | |||||||
Chinese | 三鹿集团 | ||||||
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Literal meaning | Three deer group | ||||||
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Transcriptions | |
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Standard Mandarin | |
Hanyu Pinyin | Sānlù Jítuán |
Sanlu Group CO., Ltd. (SJZSGCZ) was a state-owned Chinese dairy products company based in Xinhua District, Shijiazhuang, the capital city of Hebei. It produced one of the oldest and most popular brands of infant formula in China.New Zealand's Fonterra owns 43% of Sanlu.
In September 2008, it was involved in an adulterated powdered milk scandal, affecting some 294,000 Chinese infants and killing six. Their infant formula had been tainted with melamine, which can cause kidney stones 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.
The company began as Shijiazhuang Dairy Company (SDC). 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 powdered milk 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 (中国乳制品工业协会), and elected to the National Committee of the Chinese People's Political Consultative Conference. The company was a collective; managers and workers both owned shares of Sanlu.
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 The Party: The Secret World of China's Communist Rulers, 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."
In December 2005, a joint venture agreement was signed which involved New Zealand dairy cooperative Fonterra taking a 43% equity stake in the Chinese dairy by injecting ¥864 million. The joint venture company started trading in 2006. The majority 56% stake is owned by Shijiazhuang Three Deers Limited (石家庄三鹿有限公司).