OSI Industries’ Market Expansion Strategies

OSI Industries has expanded its expansions massively both locally and internationally in the last five years. Sheldon Lavin, the Chairman and the Chief Executive Officer who joined the company in 1970’s facilitates the developments. He works for hand in hand with the president and Chief Operations Officer, David McDonald who joined OSI Industries in 1987.

Some of the recent acquisitions and purchases will boost the growth of the company in a significant way. Locally, the company purchased Tyson Foods in 2017. The 200,000 square feet plant would provide more room for the company to do expansion thus increasing its productivity for the North American customers. Accepting the deal, the company’s representative pointed out that the facility will be in a position to meet the rising demand of the company’s products in the market. Even though the plant was specialized in poultry products, the company plans to produce a variety of other products in the facility.

Another acquisition done by OSI Industries was the acquisition of Flagship Europe in December 2016. The deal was reached to address the supply of the company’s products across Europe and in the United Kingdom. The plant specializes in frozen poultry, pies, dressings, and sauces. Flagship Europe was renamed Creative Foods Europe in early 2018 to improve its brand. Before joining OSI Industries, the company had agreed with Calder Foods. Calder Foods specializes in dips, sandwich fillings and sauces to name but a few. This implies that the acquisition is a boost to other products in OSI.

In Spain, OSI Industries upgraded the Toledo plant in the way of increasing production to cater to the rising demand of the company’s products. The facility was producing 12,000 tons of poultry products each year, but after expansion, the production doubled to 24,000 tons annually. The production combined with other products rose to 45,000 tons annually, which was a significant improvement. To achieve this, the company added some facilities in the plant to boost production and lower electricity cost. To cut cost on electricity, the water would be heated through recycling of the heat produced by the refrigeration units and production system.

Additionally, safety measures were improved through the installation of surveillance cameras inside and around the perimeter wall of the plant. Modern firefighting equipment was also put in place. In line with the company’s obligation to provide high-quality products, a kitchen for quality testing was put in place, and a quality control manager employed to oversee its operations.