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.
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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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