MEXICO: Nestle pours $1bn investment into two new factories

By Hannah Abdulla | 24 January 2014

Nestle CEO Paul Bulcke has announced a $1bn investment for the construction of two Mexico factories

Nestle CEO Paul Bulcke has announced a $1bn investment for the construction of two Mexico factories

Nestle has announced it is to invest US$1bn into its Mexican operations with the construction of two factories.

The five-year investment will fund a new infant nutrition plant in Ocotlán, in western Mexico's Jalisco state, and a pet food factory in the city of Silao, in the central state of Guanajuato. It will also be used to expand its cereal facility in Lagos de Moreno.

The announcement was made by Nestle CEO Paul Bulcke during the World Economic Forum in the Swiss resort of Davos.

"This investment is a striking example of our commitment to Mexico, and our long-term vision in a market with high growth potential," Bulcke said. He added the investment would create 700 direct jobs.

The factories in Mexico, the second-largest market in Latin America for Nestle, will also produce goods for the wider region. Some 40% of the products made at the new infant nutrition factory in Ocotlán, for example, will be exported to Latin America and the Caribbean.

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Nestlé is to invest one billion dollars in Mexico, building two new factories in the country which is the sixth largest global market for the company.

The announcement was made by NestléCEO Paul Bulcke during the World Economic Forum in the Swiss resort of Davos.

The five-year investment, will fund a new infant nutrition factory in Ocotlán, in western Mexico’s Jalisco state, and a petfood factory in the city of Silao, in the central Mexian state of Guanajuato.

It will also be used to expand Nestlé’s cereal factory in Lagos de Moreno, also in Guanajuato state, with state-of-the-art technology, making it the company’s largest in the region.

“This investment is a striking example of our commitment to Mexico, and our long-term vision in a market with high growth potential,” Mr Bulcke said.

The investment would, he said, enable the creation of 700 direct and 3,500 indirect jobs, as well as bolstering the amount of raw materials purchased locally.

The factories in Mexico, the second largest market in Latin America for Nestlé, will also produce goods for the wider region.

Some 40% of the products made at the new infant nutrition factory in Ocotlán, for example, will be exported to Latin America and the Caribbean.

Nestlé has been present in Mexico for eight decades and today offers a portfolio of more than 80 brands and a range of 1,600 products.

Original source: Nestle

Sectors: Baby food, Cereal, Emerging markets

Companies: Nestle

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