OSI Group, the U.S.-based supplier at the center of a food safety scandal in China, has handed control of one of its plants here indefinitely to a subsidiary of competitor Golden State Foods Corp., a Golden State spokeswoman said Tuesday.

    California-based Golden State, one of the world’s biggest suppliers to fast food companies, will focus on increasing production at OSI’s facility in Guangzhou, spokeswoman Shellie Frey told Reuters by telephone.

    The facility produces fruit and vegetable products for customers that include McDonald’s Corp.

    Frey said the transfer of control to Golden State’s KanPak China unit was “a unique situation,” adding that it would last indefinitely. She referred questions about the reasons for the management change to OSI.

    OSI’s meat producing plant in Shanghai was shut down in July over allegations workers there used expired product and doctored food production dates. Last week, Chinese police arrested six OSI employees in connection with the issue, which earlier prompted McDonald’s to end supply contracts with OSI in China.

    In a separative report, McDonald’s Corp.was quoted as saying Tuesday that it will increase the number of audits it conducts of suppliers in China, after the food scandal in July dented China sales at the U.S. fast food chain and rival Yum Brands Inc.

    The restaurant chain said half of the audits would be done unannounced and would be carried out by third party auditors and internal teams.

    (SD-Agencies)