OSI Group’s Global Expansion Progresses Swiftly

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OSI Group's Global Expansion
OSI Group's Global Expansion

The OSI Group has a long history and plays an important role in the world’s food industry. It produces an impressive variety of goods that range from beef and chicken to vegetables, pizza, sauces and sandwiches. The corporation maintains headquarters in a northern Illinois city called Aurora. President David McDonald and CEO Sheldon Lavin serve as OSI’s top leaders. They have expedited its global expansion in recent years.

Eastern Asia

In 1992, this company established a facility in China for the first time. The Beijing plant soon began supplying food to quick-serve restaurants. Sixteen years later, OSI provided eateries with chicken, beef, pork, onions and eggs during the Beijing Olympics. Visitors were highly satisfied with the food’s quality. The pace of OSI’s expansion in Asia started to accelerate after the famous sporting event.

A new beef plant began operating in neighboring Japan during 2010, under the name Orange Bay Foods, or OBF. This joint venture project was the first to invite a large investment from outside the Ehime Prefecture in Japan, creating many opportunities for local packaging companies as well as transportation companies that ship raw materials and finished products to and from the area. OBF has continued to quite vigorously support the local economy.

Also in 2010, OSI entered the vertically integrated poultry business by opening OSI Weihai Poultry in Shandong Province, China.  Two years later, OSI opened an up-to-date feed mill for the operation. It ranks among the nation’s biggest production facilities of this type. The mill can produce up to 600,000 tons per year while ensuring safety and maintaining a high level of quality. OSI Weihai Poultry is now a fully integrated poultry operation, engaged in feed production, breeder feeding, hatchery, broiler feeding, slaughtering and further processing to ensure the highest standards for biosecurity, quality assurance and traceability. In 2017, the location won a 3 Star Good Chicken Production Award from the International Cooperation Committee of Animal Welfare (ICCAW) and Compassion in World Farming (CIWF).

During 2012, OSI constructed a massive new processing plant in China’s Henan province. It also set up a joint venture with a Chinese poultry company known as the Doyoo Group, which it has since bought out. This helped OSI become one of the country’s top chicken suppliers.

President David McDonald commented on OSI’s operations in the world’s fourth-largest nation. He explained that his company concentrates on serving Chinese customers because the country has a huge population and its people continue to become wealthier. Many of the food supplier’s Chinese clients have recently succeeded in boosting revenues, and OSI strives to meet their rapidly increasing needs. McDonald asserts that OSI is “In China, For China.”

India

This company has a significant presence in South Asia as well. In 1995, the company began cooperation with Vista Processed Foods, a respected supplier in India with several locations. In March 2012, it opened a new plant that process frozen vegetables. The Madanapalle facility serves Indian stores and fast-food outlets. About seven months later, a similar plant began operating in Punjab. It supplies fresh and frozen vegetables to customers across India and various Middle Eastern countries. The facility benefits from its location near farms, major cities and airports. Vista Processed Foods is now wholly owned by OSI Group.

Eastern Europe

Also in 2012, OSI started building a new plant in Poland. The company planned to replace a nearby facility that began processing beef about two decades earlier. Customers in Poland, Sweden, Finland, Slovakia, the Czech Republic and the Baltic States now order hamburgers from the new plant in Ostróda. The new building cost more than $30 million and has a maximum output of about 25,000 tons.

Before 2012 came to an end, OSI expanded a chicken processing facility in Hungary. It spent around $25 million to enlarge the storage and production areas. This project boosted the plant’s capacity by 15,000 tons per year. The factory primarily processes chicken for fast food restaurants in 16 nations throughout Europe. Ninety percent of the food goes to buyers outside of Hungary.

Further Progress

In 2014 and 2015, a pair of eco-friendly facilities earned Leadership in Energy and Environmental Design (LEED) certifications. Both OSI Ostróda and Henan Best Foods have been LEED certified for their environmentally friendly operations.

A year later, OSI established a new joint venture in Germany. The Illinois firm started cooperating with a grocery store chain known as Edeka. This is Germany’s largest supermarket company. The food supplier also set up a research and development center in eastern China. It maintains similar facilities in Germany and the United States. They enable OSI employees l to develop highly customized products.

Acquisitions

After the company opened a new office in southern Germany, it acquired a fellow supplier known as Flagship Europe. This firm provides British dining establishments with poultry, mayonnaise, dips and sauces. Before the 2016 acquisition, it was owned by Colorado’s Flagship Food. The OSI Group gained the ability to serve additional clients and supply a wider range of goods.

Less than a year later, the company purchased a controlling stake in the Dutch firm, Baho Food. This manufacturer has processing facilities in the Netherlands and Germany. It makes snack and deli products for shops and large kitchens in 18 nations across Europe. Baho sells these foods through five divisions: Q Smart Life, Vital Convenience, Gelderland Frischwaren, Bakx Foods and Henri van de Bilt.

The OSI Group initiated another major acquisition in March 2017. It bought German meat business Hynek Schlachthof GmbH. This firm operates beef slaughterhouses and has headquarters in Tauberbischofsheim. Despite selling the company, former owner Hynek Schlachthof continued to hold his position as its managing director. This firm attracted OSI because its slaughterhouses are located near cattle ranches.

Philippines

The company continues to benefit from a joint venture with GenOSI in the Philippines. It opened a new processing facility during May 2017. The plant supplies chicken, fish and beef to food service companies and eateries. It can produce nearly 51 million pounds per year. Sheldon Lavin called it a “world-class facility,” and GenOSI President Fred Uytengsu strongly praised his firm’s lasting partnership with OSI.

Expansion Continues

David McDonald has spoken about the company’s plans for the future. He stated that it aims to consistently grow and open additional facilities. The president credited OSI’s chief executive for this strategy, saying that Lavin always wants to expand the business and its product line. He also mentioned the ongoing effort to accommodate changing desires as more clients seek healthy products, such as organic and natural foods.

The above-mentioned news items and statements suggest that OSI will keep growing in the years to come. The company is always on the lookout for its next acquisition. The future of this company seems bright; food remains vital regardless of economic fluctuations, and the world population continues to grow. The group’s commitment to quality and efficiency will help it compete with fellow suppliers.

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