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Nestle Invests $1 Billion Building Two New Plants in Mexico

Nestle SA, the world’s biggest food company, will invest $1 billion in Mexico over five years, building two new factories in its sixth-largest market.

Nestle will fund a new infant nutrition factory in the western city of Ocotlan and a petfood factory in Silao, central Mexico, the Vevey, Switzerland-based company said in a statement today. Chief Executive Officer Paul Bulcke said the investment will create 700 direct and 3,500 indirect jobs, as well as bolster the amount of raw materials purchased locally.

Food companies are grappling with an economic slowdown in emerging markets and ongoing weakness in Europe, which led Nestle to last year report the smallest gain in pricing for the first nine months of any year since 2003.

Nestle has been present in Mexico for eight decades and has more than 80 brands in the country.

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