September 25, 2014

OSI to lay off more than 300 from China plant after expired meat scandal

 

More than 300 workers at OSI Group's Shanghai-based Chinese plant will be laid off following a controversy in which expired meat are sold to fast food companies, the US food supplier announced.

As a result of the incident, which came to light after an investigative report by a local TV station, China's authorities had shut down the Shanghai Husi Food Co facility, with six employees arrested since then.

OSI does not expect the plant to resume operations soon while not mentioning of a permanent closure. In addition, 340 people would be made redundant, both direct employees and contract workers

"A small number of staff… must be retained in order to assist with the ongoing investigations. As such, Shanghai Husi cannot be fully shut down at this stage," the company said.

In the meantime, OSI is conducting its own internal probe.

According to the Shanghai Food and Drug Administration, OSI was responsible for the incident and urged for more cooperation in the probe.

The company's clients in China originally included McDonald's, KFC, Pizza Hut, Starbucks, Burger King, 7-Eleven and Papa John's Pizza.