OSI Group probe finds standards at supplier unit below par

SHANGHAI, July 28 Mon Jul 28, 2014 3:25am EDT

SHANGHAI, July 28 (Reuters) - An on-going internal investigation conducted by OSI Group LLC into its unit, the scandal-hit Chinese food supplier Shanghai Husi Food Co Ltd, has revealed that standards were below par.

David McDonald, president and chief operation officer at OSI Industries, told a news conference in Shanghai on Monday that the company would make "sweeping changes" to its China operations, including senior personnel changes.

The firm will also spend 10 million yuan ($1.62 million) over three years to launch a food safety education programme in Shanghai.

OSI said over the weekend it would "withdraw from the marketplace" all products made by Shanghai Husi, and that it was conducting an internal investigation into current and former senior management. ($1=6.1871 Chinese yuan) (Reporting by Fayen Wong; Editing by Clarence Fernandez)