OSI Group, the Illinois-based owner of Shanghai Husi Food, has confirmed that the Shanghai-based meat supplier of Yum Brands and McDonald's in China is under investigation.

The investigation steemed from Shanghai Husi's alleged selling of expired chicken and beef to Yum Brands, which owns KFC and Pizza Hut chains in China, and McDonalds.

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A representative for OSI Group confirmed that the company is under investigation but he refused to provide further comments.

Shanghai Husi was contacted by the press but did not respond to any requests for comment.

A watchdog closed Shanghai Husi Food Co Ltd, a local unit of OSI, and seized meat products suspected of being beyond their expiration date, according to a statement on Monday from the Shanghai Municipal Food and Drug Administration.

Both Yum Brands and McDonald's said they have already stopped using the supplier and are conducting their own investigation in what can be another major food safety scandal involving foreign food companies in China.

On Monday, the state-owned xinhua News Agency reported that Chinese authorities have already suspended the operation of Shanghai Husi due to the latest food scandal.

Yum Brands has been particularly careful dealing with suppliers in China after it got entangled with a food safety scandal in the country last year.

Yum, which considers China as its biggest market, was in hot water last year after the chicken suppliers to its KFC chain were found to have used antibiotics on poultry meat.

The scandal affected Yum's sales in China, triggering a massive menu change and marketing campaign this year.

McDonald's, meanwhile, has more than 2,000 outlets in China and aims to further gain a foothold in the massive Chinese food market.

TagsYum! Brands, McDonald's China