Tingyi gives oil pledge on noodle products
By Imogene Wong From The Standard
China’s largest instant noodle maker Tingyi (Cayman Islands) (0322) denied any of its oil was procured from Taiwan, after its sister firm was found to be involved in a fake oil scandal.
Tingyi, owner of the Master Kong brand, yesterday said all its products use palm oil that is directly imported from Malaysia.
The firm also stressed its production process complies strictly with national standards.
Taiwan’s Ting Hsin International Group, the largest shareholder of Tingyi, was fined NT$3 million (HK$791,481) on Monday by local authorities after it was found the firm had bought adulterated oil from Changchi Foodstuff Factory.
The tainted oil was used by Ting Hsin’s subsidiary Wei Chuan Foods Corporation to make 21 edible oil products.
Tingyi’s share price fell on the news although on Monday it outlined plans to tap the mainland’s baby formula market.
It will enter a joint-venture with Japanese firm Wakodo, to sell infant milk formula and baby products in China.
A venture to undertake this business has been set up with a registered capital of US$5 million (HK$39 million) and has already got the approval of mainland authorities.
Tingyi will hold a 45 percent stake in the new venture. Shares of Tingyi fell 1.8 percent to HK$22.20 yesterday.
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