CHINA TOPIX

11/22/2024 07:42:20 am

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Yum Severs Ties with China Meat Plant

Yum

(Photo : REUTERS/STRINGER) A truck drives past a building of the seized Shanghai Husi Food Co Ltd factory July 21, 2014.

Yum Brands Inc., in China cut its ties with OSI Group LLC following a food safety scandal in the meat plant.

Shanghai police detained five OSI employees on Wednesday for allegedly selling expired products. The authorities ordered the company's Shanghai Husi Food plant closed this week following the allegations.

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Yum said in a statement that they have decided to stop all transactions with OSI China immediately.

OSI Group LLC, an Illinois-based company which owns OSI China and Shanghai Husi, said in a statement that Chinese authorities have already examined all its facilities and found no issues with them.

OSI Group Chairman and Chief Executive Officer Sheldon Lavin on Wednesday said the company would properly address the concern.

"What happened at Husi Shanghai is completely unacceptable," Lavin told Reuters. "We will bear the responsibility of these missteps, and will make sure that they never happen again."

The latest food scandal in the China caused not only Yum, but also McDonalds, KFC and Pizza Hut to pull their products from their restaurant chains to avoid serving expired meat to clients.

China Food and Drug Administration has said the incident was not only the fault of the detained individuals, but of the company in general.

"It is difficult to believe and completely unacceptable that the management of Shanghai Husi ... would oversee and organize illegal and dishonest operations," Yum said in a statement.

Meanwhile, despite the food scandal, McDonalds will continue working with OSI.

McDonalds said that it will continue to make transactions with other divisions of Shanghai Husi in the country because of their decade-long relationship of providing quality food to customers.

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