A Chinese newspaper said Monday that Cheung Shu-hung, co-owner of Lee Der Industrial Co., hung himself over the weekend after a huge recall of toys by Mattel (MAT). The levels of lead in the paint on the toys was excessively high.
The state-run newspaper, Southern Metropolis Daily, quoted a manager that responded to the tragedy saying, "When I rushed there around 5 p.m., police had already sealed off the area. I saw that our boss had two deep marks in his neck."
No official cause was given for the suicide, but Cheung and Lee Der were under pressure over the growing controversy of products made in China.
Lee Der Industrial said after the recall that their paint supplier gave them what they called "fake paint," which was then used on the toys.
Even so, Chinese leaders temporarily banned the company from exporting any products. The newspaper says unidentified workers claim the recall cost the company around $30 million.
Earlier this year another Chinese company had the same problem as its railroad toys made for RC2 Corp. in New York, had 1.5 million of its toys recalled for the same reason.
Lead paint can cause anemia, vomiting and neurological damage.
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