Local media in Shanghai reported that Shanghai Husi Food Company reprocessed meat products that had outlived their shelf life and supplied them to transnational fast-food chains including McDonald's, KFC and Pizza Hut.
Reporters who managed to enter Husi workshops said they saw clear evidence that stale beef and chicken were repackaged after processing and their shelf life was prolonged for another year, state-run Xinhua news agency reported.
Shanghai's food and drug authority has launched an investigation, and demanded all the suspected meat products be taken off shelf.
Shanghai Husi Food, a member of the American OSI Group, was founded in 1996.
It has two production lines, one for chicken and the other for beef and pork.