Sanlu Group CO., Ltd. (SJZSGCZ) was a Chinese dairy products company based in Xinhua District, Shijiazhuang, the capital city of Hebei.
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.
At the time of signing the joint venture contract with Fonterra, the company declared it would invest 3 billion yuan for external growth, to form a national industrial network over the next three years.
In October of the same year, the company invested in a production facility with a capacity of 100,000 tons of lactic acid bacteria drink and yoghurt in Xinxiang, Henan, for 120 million yuan.
"Made in China", a special edition of the CCTV program "Quality Reports Weekly", aired on 2 September 2007, and focused on the company.
[18] In September 2008, Sanlu came to international attention due to product concerns regarding its infant formula, which was discovered to have been contaminated with melamine, a non-alimentary chemical which causes kidney stones.
[28][29] Sanlu, whose products sell at half the price of equivalents on the market,[30] recorded the highest levels of contamination among all the samples tested, at 2,563 ppm.
Four Shijiazhuang officials, including vice mayor in charge of food and agriculture, Zhang Fawang, were reportedly removed from office.
[34] Since Sanlu, the region's largest purchaser of milk, was ordered to halt production, many small dairy farmers were put into hardship.
[35] On 24 September, Fonterra announced that it had written down the carrying value of its investment by NZ$139 million (two-thirds), reflecting the costs of product recall and the impairment of the 'Sanlu' brand "as a direct consequence of the criminal contamination of milk in China".
[13] On 19 December, Sanlu secured a loan of ¥902 million to pay medical expenses of and compensation to children affected by tainted powdered milk it produced.
It was announced on 25 December that Shijiazhuang court accepted a creditor's bankruptcy petition against Sanlu, which reportedly had net debt of ¥1.1 billion.
Tian pleaded guilty to her role in the scandal, and expressed her remorse, and also called for China to consider embracing the European Union's standards on melamine.