KRAFT Foods China has started the construction of a 545 million yuan (US$88 million) plant in Suzhou to expand production capacity.

The plant, which will more than double Kraft's production capacity in Suzhou after it is completed in August 2014, brings the total investment of Kraft Foods in Suzhou to 1.14 billion yuan.

"We will continue to boost marketing and innovation efforts for our key brands and to further expand our sales channel coverage in China," Shawn Warren, president of Kraft Foods China, said in a statement yesterday.

China has become the fastest growing market in Kraft's global business and the company has been stepping up efforts to add local flavors to cater to Chinese consumers. The company produces Oreo and Chips Ahoy biscuits as well as Cadbury chocolates and Halls cough drops.

China's snack-food market is valued at over 75 billion yuan last year, said market research firm Euromonitor.