The Extensive Growth of OSI Group

In the 19th century, most German immigrants made Illinois their new area of residence. After some few years in the neighborhood, one of the immigrants, Otto Kolschowsky ventured into the food processing industry by launching a small butcher shop. Otto Kolschowsky propelled the extensive growth of his butcher shop into the present OSI Group. Although he started out alone, his sons- Arthur and Harry joined the business in 1928. The corporation was known as Otto & Sons.

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In the 19th century, Otto & Sons was one of the most reputable food processing companies in Illinois. Their positive portfolio attracted many clients such as the McDonald’s restaurant that was owned by Ray Kroc. Before Ray Kroc established the first McDonald’s fast food joint, he consulted Otto & Sons. Since Otto & Sons could deliver large quantities of processed meat products in large quantities, they signed a contract with the McDonalds Corporation. As the primary supplier of meat products to the McDonalds, Otto & Sons was earning a substantial amount of income. The partnership progressed smoothly until the McDonalds entity began expanding rapidly. The expansion of the fast food joint has various merits and demerits. The merits involved delivering larger quantities of meat products. On the other hand, the demerits involved trying to maintain the freshness of the food products when transporting them to the fast food joints that were not close to the food processing plants owned by Otto & Sons.

To keep the partnership afloat, Otto & Sons carried out some research, and they found out that some scientists had carried out some experiments and in turn, they discovered that liquid nitrogen could be used to store food products in a frozen state. The concept went by the name “flash freezing.” Otto &Sons was back in business, and their discovery strengthened the partnership with the McDonalds restaurant. In the 1970s, Otto & Sons was also expanding their base of operation through the construction of more food processing facilities. Since the company was experiencing some financial challenges, they had to look for a solution. Fortunately, Otto & Sons teamed up with a financial consultant, Sheldon Lavin. Sheldon Lavin helped the company to procure the amount of money they needed to complete the construction of the food processing plant. Eventually, the company had to rebrand to OSI Group after handing over the organization’s leadership to able leaders such as Sheldon Lavin. OSI Group has experienced an extensive growth rate for the four decades that Sheldon Lavin has been the CEO of the organization. Today OSI Group is known as a major food provider.

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How OSI Food Solutions Increased Chicken Products Processing Capacity in Spain

OSI Food Solutions completed a €17 million project at the beginning of this year that involved the installation of a chicken production unit. Due to the increased demand for chicken products in Spain and Portugal, the company took the initiative of adding another production unit at its Toledo plant in Spain. Before the upgrade, the plant would produce a total of twelve thousand tons annually, but the production doubled to twenty-four thousand tons annually. Apart from chicken products, the plant also produces pork and beef products, and therefore the upgrade affected the total output that increased to forty-five thousand tons annually. The whole facility provides employment to a hundred and forty people but the process of upgrading created twenty more jobs, and that is a boost to the economy. Read this artcle at Forcepoint to know more.

José María del Río, the Managing Director of OSI Food Solutions Spain, pointed out that in these two countries, the demand for chicken products rose by eight present in the last three years but in one year alone by six percent. He predicted the continuous trend in the coming years. The added unit measured 22,600 square foot and included modern equipment that would enhance high production. These included service areas for oil, refrigerated rooms for storing waste containers, spacious storage area for the raw material and hot water tanks. Others included Nitrogen tanks, receiving, the dispatch unit, a spacious production hall, service areas for oil used in processing, and a hall for employees to relax.

The new facility was fitted with an electric management system that involved recycling of heat produced by refrigerators and the production system. This heat would boil water instead of using electricity. Additionally, the security and safety systems received an upgrade in line with modern technology. The President and the Chief Operating Officer of OSI Food Solutions, David McDonald noted that the expansion of the plant was part of the company’s strategy to boost its supply of the products to its customers. He added that the company plans to grow together with the increase in the retail demand and would add more products to its portfolio. He was pleased because OSI Food Solutions created more job opportunities besides adding the production capacity.

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