China's 'rotten meat' scandal firm sacks 340 people at Shanghai plant
A US supplier said on Monday it is laying off most of the workforce of a Chinese subsidiary accused of selling expired meat to McDonald’s, KFC and other major restaurant chains.
A US meat supplier said on Monday it is laying off most of the workforce of a Chinese subsidiary accused of selling expired beef and chicken to McDonald’s, KFC and other major restaurant chains.
Shanghai Husi Food has been under investigation since a Shanghai TV station reported in July that it repackaged and sold out-of-date meat. Six employees were arrested in August on suspicion of producing substandard products.
Its owner, OSI Group of Aurora, Illinois, said it will lay off 340 people at the Shanghai unit. It said a small number of employees would be kept on while the investigation is underway. The website of Shanghai Husi says it employs about 500 people.
“Over the past two months, Shanghai Husi has experienced significant financial and customer losses,” said an OSI Group statement. “It is very unlikely that production will be resumed soon.”
The scandal has alarmed Chinese diners and disrupted operations for fast food brands.
Product safety is unusually sensitive in China following scandals over the past decade in which infants, hospital patients and others have been killed or sickened by phony or adulterated milk powder, drugs and other goods.
