Category: OSI Industries

Benefits Earned By OSI Industries After Expanding Its Business Operations In Spain

Setting up a business in a new geographical area especially an international one can be very risky but most businesses still view it as a worthy risk. However, it is always wise in the field of business to carry out research on that place and do some considerations. For instance, Spain is one of the European countries that hauled behind when other countries in the continent were overcoming the recession period. However, despite the economic crisis in the country, there are numerous unexpected benefits such as well-developed infrastructure, the presence of a globalized market and improved business strategies. OSI Industries is one of the companies in the United States that saw the brighter side of the country and went ahead to establish their business in Spain.

OSI Industries acquired a new food facility in Toledo, Spain with the aim of increasing chicken production in the region. According to José María del Río, the managing director of OSI Food Solutions in Spain, demand for chicken products had increased tremendously both in Portugal and Spain. He remarked that the demand had reached a growth of 6 percent per annum a few years ago, but it has grown further to 8 percent every year for the past three years. Being positive that the trend will continue he highly supported the acquisition of the new plant in Toledo.

The new plant line lies on a 22,600 square feet space holding a new product development kitchen that is expected to help fulfill the diverse needs and preferences of customers. Other facilities held in it include refrigerated rooms designed to store waste containers, an employee lounge, shipping and receiving areas, supply storage area and a production area. David McDonald serves at OSI Industries as the COO, and he said that the new facility in Spain would help the company to increase their food products and services. He also said that this is a development that will enhance the growth and reputation of the company at large and benefit residents through the creation of employment opportunities.

The facility in Toledo Spain is expected to double chicken processing and increase chicken products from 12,000 tons per year to 24,000 tons. This growth in capacity is expected to meet the increasing demand for chicken products in the country. Also, with this production capacity, OSI Industries will increase its total production of pork, chicken and beef products combined to about 45,000 tons. The company had previously employed 140 people, but with the new production line, twenty more people will join the team including a new product development manager. Other companies may view Spain as a risky business region to venture in but based on the success of OSI Industries in the country, all is not lost, and any business can flourish as long as due diligence is applied in the process.

OSI Industries early development

OSI Industries is one of the largest food production companies in the world. It has employed over 20,000 workers worldwide and operates in 17 countries. Also, it has 65 facilities located in different countries. The story of this company is inspiring to many entrepreneurs who struggle with businesses. The company started from a humble beginning in 1909, and over time, it developed into a leading company globally. OSI Industries is a perfect example of a company which shows the evolving story of the American economy. It started as a butcher shop in Chicago, but today it is doing very well.

OSI Industries have its genesis in the immigrant community in the United States. A German immigrant named Otto Kolschowsky. In the early 20th century, many immigrants were coming to Chicago because it was an entry point for German immigrants. In fact, high population of Chicago then was made up of the Germans. Just two years after arriving in the United States, Otto Kolschowsky started a butcher shop in Oak Park to serve his community. The business picked up very well within the first decade. By the time, the World War One was over, the butcher shop had expanded, and it was now a wholesale business dealing with meat products exclusively. In the following decade, it continued to do very well and was even named Otto & Sons after his sons joined the business. A few decades later, Otto & Sons continued to grow but maintaining its supply to the local market.

After World War Two, the economy started to grow rapidly. It is this expansion that would lead to the turn of the story, for now, OSI Industries. A business alliance was formed between Otto & Sons and McDonald’s which had just been launched in Illinois. The two businesses were small, but as fate would have it, the two would grow to be leading multinationals in the 21st century.

In 1955, Ray Kroc opened the first McDonald’s restaurant in Illinois. The Illinois branch was the first in a new business model that we see today as the McDonald’s with multiple restaurants in different parts of the globe. Kroc had an agreement with the Sons of Otto, to supply beef products. As the company took off, OSI Food Industries would become one of the top beneficiaries of the expansion. As the McDonald’s expanded to every corner of the United States, OSI Industries was under pressure to deliver the high volumes of food products.