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Shijiazhuang Sanlu Group: A Company Profile
Access Asia Ltd., Sep 2008, Pages: 45
This Company Profile is meant to provide independent analysis on Chinese companies either in the news, or on the M&A radar. All company profiles contain contact details, company background and history, key activities in China, a SWOT analysis and key financial figures. We also include any key company events that have made the news, new product releases and branding activity.
Shijiazhuang Sanlu Group
Shijiazhuang Sanlu Group was a significant regional player in the dairy products market, and a major national player in the powdered milk sector in China, but its failure to secure its raw milk supply safety, and its mishandling of the melamine poisoning caused by that failure, which culminated in thousands of children becoming sick, and at least four dying, has not only left the Sanlu Group in serious trouble, but also the Chinese dairy industry as a whole.
Sanlu represents all that was seriously wrong with the dairy industry in China, and now that the government is looking for ways to salvage Sanlu through a sale to previous rival Sanyuan, the consolidation of the dairy industry elsewhere will have to accelerate if the industry is to survive this scandal.
What now happens to Sanlu, whether it is salvaged or sold off and to whom, what that means for existing relations with Fonterra and what happens to the debt and probably compensation to consumers, will all reflect on what will most likely happen to China’s dairy industry.
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