BEIJING, Feb. 26 -- Police in south China's Guangdong Province have arrested eight suspects and confiscated counterfeit banknotes with a face value of 130 million yuan (21 million U.S. dollars), according to the Ministry of Public Security.

A ministry statement released on Thursday said the "extra large" manufacturing workshop in a residential community in a small town also led to the confiscation of the equipment used for producing fake currency.

The arrests are the result of a more than three month investigation based on a similar case in 2014, uncovered with the help of People's Bank of China, it said, adding that "not a single" phony note from the operation had entered the market.

The ministry said the police uncovered more than 600 counterfeit banknote cases last year and confiscated copied notes with a face value of 380 million yuan.

"Severe crackdowns have effectively put a check on counterfeit banknote crimes, but the situation remains grim," said the ministry, vowing closer cooperation with other departments to intensify the crackdown.