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May 4, 2009

                       
China's Sanyuan to employ all of Sanlu's former employees
                          


All employees of Sanlu Group, the bankrupt dairy company responsible for last year's contaminated milk scandal, will be reemployed by this November, the company's new owner said Thursday (Apr 30).


To date, Hebei Sanyuan Foods Co Ltd, a subsidiary of the Beijing Sanyuan Foods Co Ltd that bought Sanlu Group in an auction in March, has signed contracts with 2,594 former employees of Sanlu, said Gao Qingshan, board chairman of the subsidiary company.


He added that the remaining staff will be re-signed soon.


Sanyuan has promised to recruit all Sanlu's staff when it won the bid for the scandal-hit group's assets, in response to the call of the Shijiazhuang municipal government to guarantee worker's interests.


Meanwhile, Gao said the new company's current production capacity is about 60 percent of that of Sanlu and the revenue is expected to reach RMB1.2 billion this year.


Sanlu had been China's leading seller of milk powder for 15 years until the melamine scandal erupted in September last year which killed at least six children and sickened some 300,000 children.


US$1=RMB6.820 (May 4)

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