McDonalds 2012
A McDonald's restaurant is pictured. Reuters

A Shanghai food distribution company that supplies meat to international fast-food restaurants was forced Sunday to withdraw all of its products for safety concerns.

Shanghai Husi Food Co. Ltd. had been reprocessing stale chicken and beef products then selling it to international fast-food giants KFC and McDonald's (NYSE:MCD) before local reporters discovered the operation, notes state-run Xinhua.

Based on the reports, the Shanghai food and drug authority launched an investigation, and demanded that the meat be withdrawn from the food chain.

The reporters provided evidence that clearly showed the meat was not fit for human consumption. The company is a member of the OSI Group of Aurora, Illinois, and was founded in 1996.