SHANGHAI Oct 3 Market watchdogs in Shanghai
have fined fast-food chain supplier Shanghai Husi Food Co and
its U.S. parent OSI Group more than 24 million yuan
($3.6 million) for making and selling sub-standard products in a
meat scandal two years ago, the Shanghai Daily reported on
The case broke in July 2014 when a Chinese TV report
allegedly showed workers at a Shanghai unit of OSI using
out-of-date meat and doctoring production dates in a scandal
that prompted apologies from OSI clients McDonald's Corp
and Yum Brands Inc.
A Shanghai court this February fined Shanghai Husi and
another OSI unit 2.4 million yuan and handed prison sentences to
10 employees. OSI said the verdict was unjust.
On Monday, the Shanghai Daily said Husi had been fined an
additional 16.98 million yuan by the Jiading district's Market
Supervision and Management Bureau. It also had its food
production license revoked and food products and illegal profits
confiscated, the newspaper said.
OSI China was fined 7.3 million yuan and issued a warning by
the Xuhui district's Market Supervision and Management Bureau,
the paper said.
Husi and those involved in the case would be blacklisted,
effectively banning them from operating for five years, it
quoted authorities as saying.
China has been trying to clean up its reputation for food
safety scandals, which range from recycled "gutter oil" and
smuggled frozen meat years beyond its expiry date to crops
tainted with heavy metals. Senior Chinese leaders have said food
safety in the country remained "grim".
Operations at Shanghai Husi Food were suspended following
the 2014 news report, some executives were detained and OSI's
chief executive said he was appalled over missteps at the plant.
In July, a Shanghai court dismissed an appeal by Husi and
upheld the February sentence, the newspaper said.
($1 = 6.6685 Chinese yuan)
(Reporting by John Ruwitch; Editing by Richard Pullin)