OSI (China) Holding Co.,Ltd lost nearly 6 billion yuan (about 970 million U.S. dollars) following a food scandal in China last year, the company said Tuesday.
On July 20, Shanghai Husi Food Co., Ltd, a subsidiary of the global food processor OSI Group, was revealed to be supplying out-of-date meat labeled with phony expiration dates to a string of fast food chains and restaurants across China.
Six senior executives were arrested after the company was investigated, and the group has stopped all operations at Shanghai Husi.
The OSI China invited media to visit its factory in central China's Henan Province for the first time Tuesday, which now provides meat products for McDonald's China after the fast food titan terminated its business relationship with the Shanghai Husi.
The subsidiary in Henan, located in Xihua County of Zhoukou City, was built in 2013 and mainly produces chicken and beef products. The factory covers 200,000 square meters and has a capacity of 165,000 tonnes.
Lyu Yong, vice president of OSI China, said from last July until now, the company has suffered a loss of about 6 billion yuan and many factories are still suspended.
"However our faith in the Chinese market has not changed. We will not give up on the Chinese market nor will we withdraw from it," he said. "We have invested more than 500 million U.S. dollars in China in recent five years, and we believe we can overcome the difficulties."
The company also said it is building an Asian quality control center in Shanghai and is planning to establish an OSI China food safety foundation to help improve the public's food safety awareness.
OSI group has more than 60 meat processing factories in over 16 countries, processing food for many fast food chains including Mcdonald's and KFC.