CHINA TOPIX

11/02/2024 07:35:03 am

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6 OSI Employees Arrested in China Amid Food Scandal

Shanghai Husi Food

(Photo : REUTERS/Aly Song )

Six employees from OSI Group-owned Husi food group have been formally arrested by Chinese officials following the sales of expired meat to several fast food restaurants.

The employees were taken into custody after investigations revealed that they were selling low-quality products. OSI Group LLC is an U.S.-based food processor. If regulators find the company guilty of tampering, OSI's license to operate can be revoked and criminal charges can be filed against the company. 

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One of those arrested was Shanghai Husi Food manager Hu Jun. All six of those arrested were Chinese citizens. A statement released by OSI Group said the company will cooperate with authorities until the entire matter is resolved.

A Chinese food safety law was issued in March making it illegal to tamper with product expiration dates. 

Authorities began investigating the scandal in July, after a television report alleged expired meat was being sold. Following the allegations, McDonald's severed its ties to the food group which resulted in a shortage of menu items in mainland China. Japan and Hong Kong McDonald's restaurants also were affected by the food scandal.

OSI owner and CEO Sheldon Lavin in late July gave a public apology to Chinese consumers, adding that the company will focus better on assuring its products are of top quality. Authorities have suspended all Husi food operations while the case was still pending, but recent updates from OSI stated all operations now have resumed.

The arrest was a shock for the Illinois-based company, which was the leading meat supplier for Chinese branches of fast food giants like McDonald's and KFC. OSI also provides meat to Starbucks, Pizza Hut, Papa John's Pizza, Burger King and 7-Eleven.  

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