US food company Kraft Foods China said today it has started the construction of a 545 million yuan (US$88 million) plant in Suzhou, Jiangsu Province, to expand production capacity as demand rises.

The 30,000-square-meter biscuit manufacturing facility will more than double Kraft's production capacity in Suzhou after its scheduled completion in August 2014.

"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.

Kraft introduced the Oreo and Chips Ahoy biscuits in China in 1996, among other snack products including Cadbury chocolates and Halls cough drops.

China has become the fastest growing market in Kraft's global business and it has been stepping up efforts to add local flavors to cater to Chinese consumers.

The new plant expansion brought the total amount of investment of Kraft Foods in Suzhou to 1.14 billion yuan, consisting of two factories and an Asia Pacific biscuits research and development center.

China's snack-food market is valued at more than 75 billion yuan last year, according to market research firm Euromonitor.