Earlier this year, Munchy signed a purchase agreement to buy Kellogg's 100% stake in Zhenghang Food.
The acquisition includes Zhenghang Food's manufacturing plant in Shandong province as well as its sales and distribution network, reported Bernama.com.
Munchy chief executive officer CK Tan said the company has been seeking to establish its presence in China, and always considered setting up or acquiring a manufacturing facility as its primary strategy.
"The acquisition of Zhenghang Food is a golden opportunity as it is the second largest biscuit business in the Shandong province with excellent manufacturing facilities," Tan told the new agency.
Zhenghang Food will continue to be headquartered in Shandong province, and will report to Munchy's corporate headquarters in Malaysia.
Through the acquisition, Munchy plans to increase the distribution channels to export more of its product range in China, and introduce biscuits produced in China to its existing network in 60 countries.
In addition to China, Munchy is also evaluating opportunities in Indonesia in the near future, either through a joint venture with established firms or individually.
Zhenghang Food offers a large variety of cookies, crackers and biscuits under the ZhengHang brand, in the north and northeastern regions of China.
In 2008, a majority-owned subsidiary of US-based cereal maker Kellogg acquired Zhenghang Food for an undisclosed amount.
Munchy, based in Klang, Malaysia, produces biscuits, crackers, cookies wafers, for domestic as well as international market, and its brands include Captain Munch, Krunch, Munchy's, Lexus, and Muzic.
