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Shanghai food authority fines fast food supplier over meat scandal

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Staff Writer | October 5, 2016
Shanghai Municipal Food and Drug Administration ordered a major fast food chain supplier and its parent company to pay fines for producing and selling substandard products.
Shanghai Husi Food Co
Food quality   Husi is a subsidiary of OSI Group
According to the authority, Shanghai Husi Food Co. and OSI Group's China office were fined approximately 17 million yuan ($2.5 million) and 7.3 million yuan respectively.

The district market regulators have also added the two companies to a blacklist of those who have committed serious legal violations, meaning stricter regulations in the future.

In a statement, the two companies accepted the punishment and promised to pay the penalty on time.

Husi is a subsidiary of U.S.-based global food processor OSI Group and a former supplier to major fast food chains including McDonald's and Yum! Brands KFC and Pizza Hut.

The case was first exposed after a local TV station reported in July 2014 that Shanghai Husi had supplied products tainted with reprocessed, expired meat to a string of fast food chains and restaurants across China.

A Shanghai court in February ordered Husi's Shanghai and Hebei plants to pay fines and sentenced 10 people to prison terms.