Nestlé is to invest $1 billion in Mexico, building two new factories in the country which is the 6th largest global market for the company.
The announcement was made by Nestlé CEO Paul Bulcke during the World Economic Forum in the Swiss resort of Davos.
The 5 year investment will fund a new infant nutrition factory in Ocotlán, in western Mexico’s Jalisco state, and a pet food 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.
Bulcke said “This investment is a striking example of our commitment to Mexico, and our long-term vision in a market with high growth potential”.
The investment would, enable the creation of 700 direct and 3,500 indirect jobs, as well as bolstering the amount of raw materials purchased locally.
Mexican President Enrique Peña Nieto said he welcomed the news of the “encouraging” investment.
"I want to express my recognition to the company which has deep roots in Mexico and continues to trust in our country," he said during a joint press conference in Davos.
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 offers a portfolio of more than 80 brands and a range of 1,600 products.