27 Jan - Chinese corn sweetener manufacturer Luzhou Bio-Chem Technology Ltd has said it will post a net loss for Q4 2008.
The company blamed falling demand and the dip in market price for its products in China – but also said the melamine-tainted milk scandal had also affectected its business.
A Luzhou statement said: “The net loss for 4QFY08 was mainly due to the decline in the demand for and the prices of the Group’s products in the PRC.
“The weaker performance was a result of consumer confidence in the Group’s downstream manufacturers’ products being shaken by the incident involving melamine-tainted dairy products in the PRC, as well as the global financial crisis.”
The company manufactures Maltodextrin – which is a flavouring added to milk powder and infant formula milk in doses of up to 25%.