Infant formula supplier Bellamy's says Chinese authorities are looking at the company's Camperdown Powder canning line in Victoria after a third-party's allegations relating to historical filing and records and to certain previous quality issues relating to it.
Bellamy's says the Certification Accreditation Administration of the People's Republic of China (CNCA) has asked for certain information about the facility but has not made any findings against Camperdown.
"Bellamy's understands that the inquiries raised by CNCA were as a result of allegations received by CNCA from a third-party complainant relating to historical filing and records and to certain previous quality issues relating to Camperdown's processing facility," the company said in a statement to the Australian Securities Exchange on Tuesday.
"Bellamy's can confirm that none of the inquiries raised by the CNCA relate to micro-biological or contamination issues or Camperdown's recent change of ownership."
Foreign suppliers of Chinese-labelled infant formula products in China must register the canning facility used to blend and pack the products with the CNCA.
Bellamy's on Tuesday said the suspension of Camperdown's CNCA licence did not affect the current production or sale of Bellamy's "Australian label"' or "Chinese label" products, and relates only to the products that Camperdown manufactures for other parties.
Bellamy's does not intend to process its products at Camperdown until the second half of fiscal 2018, and until then will continue to rely on third-party manufacturers to make its "Chinese label" product for sale in China.
The company will respond to the CNCA via the Australian regulator, the Commonwealth Department of Agriculture and Water Resources (DAWR), by July 15.
Camperdown Powder's CNCA licence was unexpectedly suspended last week.
Bellamy's shares were placed in a trading halt so that the company could determine the reasons and impact of the suspension.
The infant formula supplier completed the $28.5 million acquisition of a 90 per cent indirect interest in Camperdown Powder last week.
The company also completed a $60.4 million capital raising to fund the acquisition and other parts of its turnaround strategy..
Bellamy's shares were suspended from official quotation on Tuesday so the company could consider the impact of the licence suspension on the retail component of its capital raising.
Bellamy's shares last traded at $6.74.
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