If you’re looking for a machine manufacturer for your next project, you’ve come to the right place. This article will introduce you to two companies specializing in baby powder manufacturing machines: Sanlu and Feihe International.
Read on to learn more about both companies and find the machine that’s right for your business.
We’ll also talk about some of the key features you should look for in a baby powder manufacturing machine.
The latest scandal to hit China’s infant milk formula industry is Feihe International, the country’s largest manufacturer.
Listed on the Hong Kong Stock Exchange, Feihe has been preparing a robust defense against allegations of fraud.
The company has declared a cash flow of CNY6 billion and a profit margin of 26 percent in its fiscal year 2018, but has not paid dividends to shareholders for the past five years.
The scandal over milk contamination in 2008 led to many parents switching to foreign brands.
However, the country is working to increase local production.
The central planner of China released a document on baby formula production in June, although it did not specify a date for its achievement.
In 2018, Feihe beat analysts’ expectations for first-half earnings and projected double-digit growth in sales revenue for the remainder of the year.
The IPO price range represents a multiple of 12.2 to 16.2 times forecast earnings for 2020.
The float will give the firm a market capitalisation of $8.5 billion to $11.4 billion.
This is Feihe’s second attempt at a public listing after backing out of plans to list in Hong Kong last year.
In August 2017, the company backed out of an IPO in Hong Kong but pressed ahead with the acquisition of Vitamin World.
The IPO comes against a backdrop of Beijing’s efforts to make Chinese brands competitive globally.
Feihe has three subsidiaries, Longjiang Feihe and Gannan Feihe.
The Gannan Feihe Dairy is the flagship branch of the company. The premises in Longjiang are over 29,690 square meters and are 21 years old.
It is currently undergoing expansion to increase the processing capacity to 900 tons per day. It is expected that the new facility will be completed by 2012.
Recently, the Chinese government halted production of baby milk powder made by a Sanlu Company, following a massive contamination scandal.
The product contained melamine, an industrial chemical that is normally used to boost milk protein.
The scandal has forced Sanlu to apologize for the tainted milk powder. In response, the Sanlu Group suspended production. It has also ceased imports from China.
On Friday, China’s health ministry blamed the dairy industry for its slow response to the contaminated milk powder crisis, which caused the deaths of at least 59 babies.
A further four hundred and fifty babies have developed kidney stones, putting their lives at risk.
China’s product-safety system was weakened by the scandal, which has also triggered a rash of recalls and a public relations outcry.
The Sanlu Group was aware of the problem in August, but did not release any information until after the reports of sick infants started appearing.
In the wake of the scandal, dozens of lawyers from across China volunteered to represent families against Sanlu, but were pressured by the government to withdraw their cases.
The Chinese government refused to hear individual lawsuits, but began a massive series of prosecutions.
Ultimately, Sanlu’s chairwoman Tian was sentenced to life in prison and its other executives were sentenced to five to fifteen years in jail.
The company’s supplier and local dairy farmer were executed in late 2009.
Since the contamination is widespread, the Sanlu group has recalled all formula milk powder made before 6 August.
The company is the biggest producer of powdered milk in China and is 43% owned by New Zealand dairy export giant Fonterra.
The company had already been asked by Fonterra to recall the product six weeks ago but was still unable to do so until last week. Sanlu has not issued an apology as of yet.