Nestlé is to invest one billion dollars in Mexico, building two new factories in the country, one of them in in Ocotlán, Jalisco.
The five-year investment will fund a new infant nutrition factory in Ocotlán and a pet food factory in Silao, Guanajuato. The project includes the expansion of Nestlé’s cereal factory in Lagos de Moreno, Jalisco.
The announcement was made by Nestlé CEO Paul Bulcke during the World Economic Forum in the Swiss resort of Davos during a joint press conference with Mexican President Enrique Peña Nieto.
“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.
The investment would, he said, enable the creation of 700 direct and 3,500 indirect jobs, as well as bolster the amount of raw materials purchased locally.
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.
The factories in Mexico, the second largest market in Latin America for Nestlé, will also produce goods for the wider region.
Some 40 percent 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.