OSI Food Solutions Hungary has added a high-capacity production line and large cold storage area to its existing building in Bábolna, Hungary. The $25 million addition was completed earlier this year and has increased the production capacity of quality processed chicken products from 7,000 tons to 22,000 tons, annually.
This capacity-expanding project began at the start of the new millennium. With significant investment in 2001, the company began to focus on chicken meat products and, since 2004, its export share has increased from 15-20% of production to 90%.
“The goal of the present capacity development is to strengthen our position in the Central-Eastern-European region,” said Mr. György Erdélyi, managing director of OSI Food Solutions Hungary. “We will now produce the items formerly made at other European OSI plants in the Bábolna facility.”
The majority of OSI Hungary’s production volume is sold to the European division of McDonald’s. OSI delivers its chicken products to McDonald’s restaurants in Hungary and 15 other European countries. The cooperation of the two companies has a long history.
“McDonald’s suppliers must follow very strict quality assurance requirements,” explains Mr. Zoltán Papp, Senior Supply Chain Manager of McDonald’s Hungary. “Such long-term cooperation is only possible if the company is able to provide huge quantities at a permanently high quality. The Hungarian division of OSI can do that. It’s really important for us that a Hungarian SME (Small-Medium Enterprise) could grow to be one of our international suppliers.”
Source: OSI Group LLC