WELLINGTON - NEW Zealand dairy giant Fonterra has rejected claims the former head of its Chinese joint venture pleaded guilty to charges related to the tainted milk scandal, reports here said on Friday.

Tian Wenhua, former general manager of Sanlu Group, had 'absolutely and unequivocally' pleaded not guilty in a Chinese court to the charges, a Fonterra spokesman told the New Zealand Herald.

According to China's state media, Tian, who faces the death sentence if convicted, this week pleaded guilty to selling dodgy products and admitted she delayed reporting the danger.

She and three other company officials stood trial in the northern city of Shijiazhuang over a scandal that killed six children, sickened nearly 300,000 and prompted a worldwide recall of goods containing Chinese milk.

The verdicts have yet to be delivered, but Fonterra chief executive Andrew Ferrier said he would be saddened if Tian were convicted, let alone executed.

'She seemed to live and breathe Sanlu,' Mr Ferrier said. 'She only wanted the best for Sanlu and it would be very sad if she's found guilty of any crimes.'

Fonterra, which wrote off its 43 per cent shareholding in Sanlu for a loss of 201 million dollars (S$163.3 million), was not represented at the one-day court hearing.

However, the Fonterra spokesman told the Herald he received assurances about Tian's not pleading guilty while making inquiries in Asia at Ferrier's request.

Chinese authorities have made no attempt to press charges against Fonterra.

Even so, Mr Ferrier said Fonterra wanted the Sanlu affair resolved before it would re-invest in China.

'It is our intention to re-invest in China at an appropriate time, providing we have enough comfort and control in the supply chain.' -- AFP