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Deaths in Panama Lead to Closure of Chinese Factor

By Global News Digest

The Standard
Chinese Business Newspaper
Posted July 31, 2007

The Deaths of nearly one hundred people in Panama from chemical poisoning after taking a cough syrup medication has led to the closure of a chemical plant in China.

The Panamanian deaths were first reported in October 2006, but the China link was not established until early May 2007.

The substance, consisting of 15 percent diethylene glycol -- a thickening agent found in antifreeze, was manufactured under the product name "TD Glycerin" by Taixing Glycerin Factory based in the Jiangsu province of China.

Though news reports have claimed that the state-owned Chinese distributor of "TD Glycerin" had warned the Spanish purchaser, Rasfer, that the product was "not for use in food or medicine," the name "TD", which stands for "substitute" or "tidai" in Chinese, made things confusing.

Glycerin is a sweetener used in foods and drugs and is a more expensive product than diethylene glycol; one is not a substitute for the other.

The head of China's General Administration for Quality Supervision, Inspection and Quarantine, Li Changjiang says his organization is investigating both the manufacturer and distribution company, CNSC Fortune Way. But so far only the manufacturer has been shut down.

Quoting reports from Spanish government investigators, Li says CNSC had clearly warned Rasfer, the Spanish purchaser, that the shipment was not for use in food or medicine.