Health authorities in the Chinese city of Guiyang have said they are recalling more than 9,000 bags of highly toxic milk powder.
More than 150 children in the south-western province of Guizhou were poisoned earlier this month by drinking the formula.
This is not the first scandal involving sub-standard milk powder.
Two months ago, at least 12 babies starved to death in eastern Anhui province, after drinking fake formula with no nutritional value.
Tests on the Guiyang powder showed it contained the golden staphylococcus toxin, which can cause heart fever and even death.
The state-run China Daily newspaper said the company was repackaging old milk powder as fresh formula in order to cheat customers.
The firm has now had its licence taken away and been fined $24,000.
This case is a shocking example of how profit seems to take precedence over all else in the new market-oriented China.
It follows a national outcry over the case in Anhui in April, when hundreds of babies were fed fake infant formula.
That another case should happen on the other side of the country indicates just how common scandals involving sub-standard foodstuffs are.
Many critics also blame local corruption.
In some cases officials knew of the complaints about the products, but failed to take any action, sometimes costing human lives.
http://news.bbc.co.uk/1/hi/world/asi...ic/3804247.stm