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Two out of the 12 samples randomly selected from the Sanlu milk powder produced by the Haoniu Dairy Co., Ltd. in Jiuquan City had tested positive for melamine, said Xian Hui, vice-governor of Gansu.
"The products of Haoniu have been sealed up," he said.
The test was conducted after the Sanlu Group, a leading Chinese dairy producer based in northern Hebei Province, admitted that it had found some of its baby milk powder products were contaminated with melamine, a chemical raw material strictly forbidden by the country to be used in food processing.
As of Saturday, a total of 432 babies throughout the nation have been sickened with kidney stones after drinking the contaminated milk powder.
Haoniu was founded in 2002 with the registered capital of 51 million yuan (7.45 million U.S. dollars). Its production was in line with the Sanlu standard and its products use the Sanlu trademark.
As of Saturday night, Gansu has reported 102 cases of infant kidney stone caused by the Sanlu milk powder. Two babies have died, Xian said.
The province has so far seized altogether 164,000 packs of Sanlu milk powder.