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Tainted milk company in bankruptcy

BEIJING, Dec. 26 (UPI) -- Sanlu Group, a Chinese company involved in the tainted infant formula scandal, has filed for bankruptcy, CNN reported.

A court in Shijiazhuang, China, where Sanlu Group is based, told CNN it has received the company's application for bankruptcy.

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Sanlu milk powder was pulled from markets beginning in September after it was discovered that melamine -- which is usually used to coat and laminate building materials -- had been found in the infant formula as an additive.

Sanlu recalled about 700 tons of product. Chinese investigators said they found melamine in almost 70 milk products that came from 20 companies.

Six babies died and 290,000 others were sickened in the case.

Melamine is also used widely in wood adhesives, fabric coatings, ceiling tiles and flame retardants. However, some Chinese dairy operations have added it to milk products to give the impression they have higher protein levels than they naturally have.

Beijing Sanyuan Food Co. and Wandashan Dairy are said to be in position to take over Sanlu, China's state-run Xinhua news agency reported.

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