The brand of the Sanlu Group, the Chinese dairy group which was involved in the melamine scandal, was recently sold at auction for CNY7.3 million.

Beijing Sanyuan Food Company has won the bidding for Sanlu with a bid of CNY616.5 million at the public auction of part of Sanlu's assets held by by Shijiazhuang Intermediate People's Court.

Following confirmation of milk producer Sanlu's bankruptcy, Beijing-based rival Sanyuan has adjusted its acquisition plan and announced that it will rent some of Sanlu's assets.

Beijing based Sanyuan Foods has published a report which says that its board of directors has approved a proposal to set up a subsidiary in Shijiazhuang to facilitate its proposed acquisition and merger with Sanlu.

According to a senior official of the Shijiazhuang government Sanlu Group, which had suspended production because of the melamine milk scandal, has resumed production.