Processing Firm Says It Is a ‘Victim’ of Contaminated Cooking Oil Scandal

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Sinograin promised it would stop working with any third-party trucking firms it found to have violated regulations.

A cooking oil processing firm said it’s a “victim” of the practice of tankers transporting both edible and non-edible oil without proper cleaning procedures, which a recent media expose has revealed and which central government agencies have vowed to tackle.

Mianxian Xinli Oil Co. Ltd., an eight-year-old agricultural product processing firm headquartered in Hanzhong, Northwest China’s Shaanxi province, said in a statement dated Tuesday that it was actively cooperating with a local government investigation into a tanker truck which was used by state-owned food giant China Grain Reserves Group Co. Ltd. to transport soybean oil to Xinli’s processing facilities.

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Mianxian Xinli Oil Co. Ltd. is cooperating with a local government investigation into improperly cleaned tanker trucks used to transport soybean oil.
China Grain Reserves Group Co. Ltd., named in a report for using contaminated trucks, has launched an internal inspection and pledged to stop working with violators.
The State Council’s Food Safety Commission is conducting a joint probe into the issue, promising severe penalties for non-compliant enterprises and individuals.

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Who’s Who

Mianxian Xinli Oil Co. Ltd.: Mianxian Xinli Oil Co. Ltd. is an eight-year-old agricultural product processing firm based in Hanzhong, Shaanxi province, China. It is cooperating with a local government investigation into a tanker truck incident involving soybean oil transport. The company has also supplied rapeseed oil to Hanzhong Vocational and Technical College and has secured nine project bids over the past five years.

China Grain Reserves Group Co. Ltd.: China Grain Reserves Group Co. Ltd. (Sinograin) is a state-owned food giant implicated in transporting edible oil in tankers that had previously carried non-edible oil without proper cleaning. Sinograin has since hired third-party trucking firms for transportation, launched inspections to uncover contamination risks, and promised to stop working with firms violating regulations.

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What Happened When

2023：: Hanzhong Vocational and Technical College awarded a cooking oil supply contract to Xinli.

2024-07-06 to 2024-07-07：: Sinograin launched an inspection of all affiliated companies to uncover contamination risks and promised to stop working with companies violating regulations.

By 2024-07-07：: Beijing News report named China Grain Reserves (Sinograin) as a company using unclean tanker trucks to transport edible oil.

2024-07-09：: Mianxian Xinli Oil Co. Ltd. stated its cooperation with a local government investigation into a contamination incident involving a tanker truck used by Sinograin.

2024-07-09：: The State Council’s Food Safety Commission announced a joint probe into the transportation of cooking oil, alongside other national agencies.

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