OSI Group, the US-based owner of the Shanghai food company that is under fire for selling expired meat, said on Monday that it will invest 10 million yuan (US$1.62 million) in a food safety education campaign in China and to establish an Asia quality control center, China Daily reported.
David G. McDonald, president and chief operating officer of OSI, was also quoted as saying that the group is conducting an internal probe into Shanghai Husi Food after allegations that the unit had sold stale meat to fast-food chains such as McDonald’s, KFC and Pizza Hut.
Preliminary investigations have found issues that he said are absolutely inconsistent with internal product requirements and policies.
“We will fully cooperate with Shanghai FDA for the investigation,” McDonald said.
The group ceased operations of the Shanghai Husi plant for internal and external investigations, and extended the internal reviews to ensure that compliance meets global standards.
The group also announced a number of changes in the organizational and management structure of OSI China.
The China operations will become a part of the OSI International umbrella, directly embedded into the corporate organization, rather than operating as a separate, decentralized entity, the report said.
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