OSI to withdraw all Husi products from marketplace

The US parent company of scandal-hit Shanghai Husi Food announced over the weekend it will withdraw all products from its Chinese subsidiary from the marketplace.

"To help rebuild the trust of our customers and consumers, as well as to cooperate with the official investigatory process, we are compelled to withdraw all products manufactured by Shanghai Husi from the marketplace," the Chicago-based OSI Group, the parent company of Shanghai Husi, said in a statement posted on its Chinese subsidiary's website on Saturday.

The group said that it is conducting an internal investigation into Shanghai Husi's management team for possible misconduct and will take legal action against those found responsible. A new management team has been brought in to ensure that operations run effectively.

OSI will fully cooperate with the government and the Shanghai Food and Drug Administration (SFDA) and other regulatory organizations, it said.

The SFDA said Saturday that Shanghai Husi forged production dates on 4,396 crates of beef patties that expired in February. They had sold 3,030 crates.

Shanghai police detained five people from Husi for investigation, the Xinhua News Agency reported Wednesday.

The scandal was triggered by a local Dragon TV report on July 20 that claimed Shanghai Husi had sold tainted products with reprocessed expired moldy meat to fast food chains and restaurants, including McDonald's, KFC and Pizza Hut.

Following the scandal, operations at Shanghai Husi Food were suspended and about 100 tons of the Husi products were sealed, according to the city government.

The scandal has dealt a heavy blow to Husi's customers and triggered renewed concerns over food safety.

Yum! China, which owns KFC and Pizza Hut, announced Wednesday that it has stopped all purchases from OSI's China branches.

McDonald's said Thursday that it will stop cooperation with Shanghai Husi and turn to OSI's facilities in Central China's Henan Province.

Two McDonald's outlets in Beijing halted the sale of Chicken McNuggets due to the supply issue, the Beijing-based Legal Daily reported Sunday.

McDonald's Holdings Co (Japan) said Friday it would stop imports of chicken products from Shanghai Husi, and will source chicken products from Thailand.

Han Zheng, secretary of the CPC Shanghai Municipal Committee, said Sunday that any companies in Shanghai that violate the law will receive severe punishment. "The investigation into the Husi incident must be accurate, timely and revealed publicly. The companies and people involved will be held responsible according to the law," Han said.