Almost a year after media reports exposed a scandal that affected major fast-food chains such as Yum! Brands Inc and McDonald’s, U.S.-based food processor OSI Group’s subsidiaries in China have not fully recovered. About an hour’s drive from Beijing, OSI China’s factory is located in Dachang Hui Autonomous County in Hebei Province. At the main entrance of OSI Group’s factory in Dachang county on Wednesday afternoon, a security guard was playing with his smartphone. For almost an hour, nobody entered the building…Full Article: July 2015

Key Point

  • In August 2014, KFC announced it would terminate its relationship with OSI.

ChinaAg Comments

  • In June 2015, it was reported that OSI Holding had lost approximately US$970 million as a result of the scandal.
  • In January 2015, 1,415 cases of expired OSI meat was destroyed in Shanghai (last of the tainted meat). OSI tainted meat products were destroyed and disposed of in Beijing and Shanghai, as well as in the provinces of Liaoning, Henan, Sichuan and Shandong.
  • In September 2014, the Shanghai Food and Drug Administration notified OSI China that it was fully responsible for the tainted meat produced by Shanghai Husi. In addition, 340 Husi employees and contractors were officially laid off.
  • In August 2014, McDonald’s in Hong Kong stopped selling fresh corn cups, green salad and fresh lemon tea as these items were primarily sourced from OSI processors in Hebei and Gaungzhou.
  • In July 2014, Shanghai Husi, a division of US-based OSI Group LLC, was found to have sold expired meat to McDonald’s, Pizza Hut, Papa John’s, Seven-Eleven and FamilyMart (Japan-based convenience store).

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