McDonald's is standing by a troubled supplier, even after allegations the company processed tainted and expired meat in China.

Chinese authorities this week suspended operations at a Shanghai Husi food plant, a subsidiary of Illinois-based OSI Group. The government intervened after a Chinese broadcaster aired footage of workers using their bare hands at a Husi factory to process expired meat, and even food that had fallen on the floor.


Five people have been detained as part of an investigation into the matter, according to state media.

While many of its fast food rivals have rushed to cut ties with OSI, McDonald's said Thursday that it will continue to do business with the supplier. The American fast food chain will shift its sourcing to a Husi plant in Hebei, before fully transitioning to a new facility in Henan.

McDonald's shares have fallen 3.7% this week.

Read - McDonald's stands by rotten meat supplier