First announced in 2017, OSI Group Aurora added a high-capacity manufacturing facility to its current production line located in Toledo, Spain. Earlier this year, the £17 million business deal was completed. In a move that has earned OSI Group more consumers, the deal has extensively increased OSI Industries’ production capacity in chicken. In fact, it is projected that the production capacity has doubled since the new acquisition.
Moreover, the latest expansion in Spain is said to have surpassed the original production capacity of 45,000 tons of chicken, and pork. A keen look at the project suggests that the entire project, inclusive of the existing production lines as well as other related services will create employment opportunities for the current job seekers within the same locality.
According to Jose Maria del Rio, the managing director of OSI Spain, the latest expansion is in response to the existing demand for chicken products since the population in the region has been increasing day in day out. Since the population is set to grow further, OSI Spain is anticipating continued growth in the demand for chicken products.
Benefits of Acquisition
The Spain expansion is not OSI Group’s first business deal for expanding its client base. In 2016, the company acquired Baho Food. This is a Dutch-based manufacturing plant that specializes in the production of meat delis and meat-based products. During the acquisition, the two principals of OSI Group, Mr. David McDonald and Sheldon Lavin noted the continued growth of the company. They said that OSI Group has sufficient resources and workforce to expand its service scope to more countries.
Furthermore, Baho Food has several branches cutting across Germany and the Dutch. It provides food to over 18 European countries. In addition to acquiring Baho Food, OSI Group acquired Flagship Europe, a manufacturing facility that deals with the production of condiments, frozen poultry and pies among others meat-based food products. Of course, the acquisition led to the acquisition of more selling dockets for OSI Industries.
As if that was not enough, OSI Group decided to acquire Tyson Foods at $7.4 million. This acquisition assisted the company in expanding its production capacity in poultry, beef and vegetable products.
OSI Group attributes its success in global expansion to maintaining a stellar rapport with local customers and other high-profile partners. Since taste goes hand in hand with culture, OSI Group works with these local consumers to supply the preferred tastes.
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