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McDonald's (MCD) Cuts Meat from China Menu Following OSI Scare

July 28, 2014 8:45 AM EDT

McDonald's (NYSE: MCD) is on watch Monday following reports that it has taken beef, pork, and chicken items off of its menus in China's largest cities.

News comes as meat supplier OSI Group recalled all products made at its Shanghai unit on Sunday. The Aurora, Illinois-based company is accused of repackaging its old meat as new, according to Bloomberg.

Limited items will be served at McDonald's locations in Hong Kong, Shanghai, and other areas.

OSI Group chairman and CEO Sheldon Lavin issued the following statement recently:

"What happened at Husi Shanghai is completely unacceptable. I will not try and defend it or explain it. It was terribly wrong, and I am appalled that it ever happened in the company that I own.

On behalf of Husi and OSI, I sincerely apologize to all of our customers in China. We will bear the responsibility of these missteps, and will make sure that they never happen again. That is my personal commitment and that of our organization.

For more than 100 years, OSI has provided safe, quality food and is currently operating at the highest standards in 17 countries serving more than 40 countries around the world. So to have this occur at this Shanghai facility violates the tenets of our company and the values we embrace and live.

Upon hearing of the Shanghai issue, I immediately sent our best team of global experts from the OSI Group, and more are on their way, to work with the local team to ensure my promise to you today is met.

We are very proud of our newest state-of-the-art facility in Henan. It reflects our confidence and commitment in China. We are also pleased that local Chinese authorities have inspected all our other facilities and have found no issues."

McDonald's is lower in early trading.



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