Kellogg acquires Chinese biscuit manufacturer

Kellogg has acquired the Zhanghang Food Company (Navigable Foods), a manufacturer of biscuits and crackers in the north and northeastern regions of China.

Terms of the transaction were not disclosed. Navigable Foods’ 2007 net sales were approximately $50 million (€31.8m).
“Geographic expansion in high-growth markets like China will help Kellogg Company continue to deliver sustainable growth,” says David Mackay, president and chief executive officer. “Navigable Foods’ biscuit products are a strong, strategic fit within the Kellogg portfolio and will further build our presence in China.”
Founded in 1993, Navigable Foods is one of the major biscuit manufacturers in China, producing a large variety of cookie and cracker products under the ZhengHang brand.
The company’s 1,800 employees, including the management team, will join a majority-owned subsidiary of Kellogg Company. The acquisition includes two manufacturing facilities located in Yishui county, Shandong province, and Fushun city, Liaoning province, as well as the company’s sales and distribution network.
Kellogg Company is the first Fortune 500, multinational company to invest in Yishui county, where Navigable Foods’ main plant is located. The business will continue to be headquartered in the city of Qingdao, Shandong province, and will report into Kellogg Company’s Asia Pacific business unit.

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