Scandal-ridden food processor issues recall

NEW YORK (CNNMoney)

Husi did not specify how much food it will recall but promised an internal investigation and new management of the Shanghai plant. The Saturday announcement also pledged cooperation with authorities, who ordered the facility closed and detained five people as part of their own inquires, state media reported.

The scandal began when Chinese television showed workers at Husi Shanghai handling expired and tainted meat with their bare hands. Workers could be seen processing meat that had fallen on the floor, for example.

It widened as the extent of the company's distribution came to light. Many well-known fast food chains use the plant to supply their Asian operations.

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Most have ended their relationship with the company or stopped selling its products. Among them are Yum Brands (YUM) (owner of KFC and Pizza Hut), Burger King (BKW), Papa John's (PZZA) and Starbucks (SBUX).

McDonald's (MCD) said it will no longer do business with the Shanghai plant but will continue to buy Husi products from other facilities. The scandal forced McDonald's to pull food from its restaurants in China, Japan and Hong Kong.

--CNNMoney's Sophia Yan contributed to this report

First Published: July 27, 2014: 1:01 PM ET

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