The recently acquired OSI Food Solutions in Spain is expected to significantly revamp production for OSI Industries. The newly opened Toledo plant has undergone major improvements with focus being made towards expanding the production capacity from 12,000 tons to 24,000 tons of chicken products per year. The ambitious plan cost OSI Industries over 17 million Euros in renovation and expansion costs, an investment that would help turn the company around.
OSI focuses on making the Toledo plant a dedicated chicken products outlet that would help the company suffice the European market demand. While increasing chicken supply, the newly refurbished and commissioned plant would also create new jobs for the market while improving on the regional economy. OSI Industries also targets using the plant as a hub to open other subsidiaries in the region as well as neighboring Germany in the long term.
The company’s entrance to the Spanish market would give it a strategic advantage to harness the expanded food consumption trends in the region. Neighboring nations including Portugal have their economies highly inclined towards food production and consumption. Expanding production to this effect gives OSI Industries the right vantage point to ensure that the demand for chicken is met. There has been, for instance, an 8 percent increase in the demand for chicken over the past three years. Such a demand would be prospected to rise in the near future, something that would revamp OSI Industries’ prospected growth.
According to OSI Industries’ president, David McDonald, the company’s entrance to the Spanish market comes at the right time when the food service industry is experiencing a high demand for new and healthy products. To ensure that the company meets the demanded production attributes, new production systems have been put in place. Improvements such as production surveillance cameras and automated food handling mechanisms would give OSI Industries the right working environment to meet the prospected demand of 24,000 tons of chicken products.
Production at the Toledo plant would also be a game changer in numerous ways. The company, in 2016, received a food production improvement kitty amounting to 1.5 million Euros. The funds would be invested towards revolutionizing the agricultural research and production systems which would go a long way to ensure that the products OSI supplies to the market are in tandem with the food safety standards. Committed to exemplary customer service, OSI would be expected to expand to other markets soon.