Police arrested the gang, headed by a man surnamed Pan, in late July in Ninghai County together with food and drug administration officials.
They seized 440,000 capsules and more than 800 kg of semi-finished products or materials in their rented workshop.
In February, the gang began to manufacture capsules with industrial gelatin, which contained chromium above norm, state-run Xinhua news agency reported.
About 90 million toxic capsules were produced and sold before they were detained.
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