Why the OSI Group Has Chosen to Invest in China

The OSI Group was started in the early seventies by a German immigrant in Illinois. When he started the company, he called it Otto & Sons. His main aim was to provide meat and meat products to the small businesses around Aurora, especially the local McDonald’s. However, with time, they have grown and increased their influence beyond the state and become a globally significant processed meat and meat products supplier. They are currently operational in more than 17 countries, and they have plans of expanding their reach even further.

One of the frontiers that the company has been looking forward to expanding their influence in is China. The OSI Group made Debut in China more than 20 years ago, and during that time, they had a hard time convincing the market to buy their products. However, they have managed to turn the situation around and become the prime supplier of processed protein products to large businesses such as Subway, Burger King, Starbucks and Yum among others. The strategies that the management of the company has put in place to help them expand their reach include capitalizing on the poultry processing plant, mainly because they feel that the industry is not yet well penetrated. When their upcoming poultry plant is complete, they will be the largest supplier of the products in the country.

The management of OSI confides that China has become one of their most significant markets because of the ever-increasing consumer markets. According to statistics, the population of the country is growing exponentially and with this growth comes an increasing need for meat and meat products. The management of the company also observed that the population in China is moving up the social, economic ladder and becoming more affluent, as a result, they need more sophisticated foods on their dinner plate, and the OSI Group is there to meet this demand.

The company has also been expanding their presence and operations in other countries both in Europe and Asia. In Poland, they have significantly grown the beef processing facility which will increase the staff by 30 percent and improve their production tremendously. They have also recently announced the opening of a new plant in Geneva. The chairman of the company, Sheldon Lavin has played an instrumental role in pushing for the growth and expansion of the business. They believe that these steps will continue increasing the productivity of the company and make it a household name on the globe.

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