Chinese authorities have seized 72 tonnes of melamine-tainted milk powder and are searching for another 100 tonnes believed to be contaminated with the industrial chemical, state media has reported.
The milk powder is thought to originate from a batch recalled during 2008's melamine scare.
According to newspaper China Daily, two dairies were shut down this weekend.
Ningxia Tiantian was closed after it was found to have repackaged 170 tonnes of tainted milk powder, which should have been destroyed but was given to the dairy by another company in payment for a debt.
Ningxia Tiantian then sold the products on to five other factories located in Fujian and Guangdong provinces and in the Inner Mongolia autonomous region, said China Daily.
Ningxia Panda Dairy was closed because of its ties to a dairy which was closed late last year, the report suggested.
Sectors: Dairy, Emerging markets, Food safety
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