Nestle To Spend $1 Billion in Mexico
Nestlé SA on Jan. 24 said it will invest $1 billion in Mexico over the next five years, primarily for building two new factories: an 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.
Some of the money will be used to expand Nestlé’s cereal factory in Lagos de Moreno, also in Guanajuato state, with new technology, making it the company’s largest in the region.
The announcement was made by Nestlé 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. Mexico is the sixth largest global market for the company and the second largest market in Latin America for Nestlé.
The investment should create 700 direct and 3,500 indirect jobs, as well as bolstering the amount of raw materials purchased locally. It's expected 40 percent of the products made at the new infant nutrition factory in Ocotlán 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.