Davos: Mexico lures $6bn in investments
Fin24/ Reuters - Jan 27th 2014, 07:42
Davos - Pepsico and Nestle on Friday announced major investments worth a combined $6bn in Mexico, where the government has just pushed through a series of economic reforms that aim to boost foreign investment and growth.
Separately, Mexican state-run company Pemex will sign a cooperation memorandum with Russia's No 2 oil producer Lukoil, Pemex chief executive Emilio Lozoya told Reuters as the country is opening up its energy sector in a move to boost production.
Pepsico said it would spend $5bn in Mexico over five years to strengthen its food and beverage business, adding it planned to expand its production capacity by adding new manufacturing lines and expand delivery routes.
The company said the investment was expected to create 4 000 new jobs.
The Pepsico investment comes despite a new levy on soft drinks and junk foods included in President Enrique Pena Nieto's economic reform drive, which spans telecoms to energy and taxes.
Nestle said it planned to invest $1bn in Mexico over five years, building two new factories and expanding a third in its sixth-biggest market.
The world's No 1 food maker said it would build an infant nutrition factory in Jalisco and a pet-food factory in Guanajuato, as well as expanding an existing cereal factory.
The investment would create 700 direct jobs, Nestle said.
The Mexican factories will produce goods for the wider region. For example, about 40% of the output from the baby food factory will be exported to Latin America and the Caribbean.
Pena Nieto said at Davos on Thursday that foreign direct investment (FDI) in Mexico totaled $28bn during the first 9 months of last year.
FDI was boosted last year by the Belgian-based beer giant Anheuser-Busch InBev's acquisition of Grupo Modelo , which went through at the end of May and brought in about $13bn.
The planned cooperation between Lukoil and Pemex comes after Pena Nieto last month signed a bill into law that ended the country's 75-year-old oil and gas monopoly.
Under the legislation, which is still being mapped out, foreign companies will be able to enter the sector as Pemex is seeking to bring in expertise and boost efficiency.
"There are dozens of new players who now come and look at the opportunities that are opening up in Mexico," Pemex CEO Lozoya said.
As a private company, Lukoil is struggling to get large new deposits in Russia, including offshore, and is actively pursuing a foreign expansion to maintain its production levels.
Coca-Cola introduces sustainable packaging solution for multipacks
26/11/2019 - 10:40
Coca-Cola is rolling a new paperboard solution for multipacks of cans as part of its drive to eliminate plastic and use more sustainable packaging in its supply chain.
SAB rolls out SA's first environmentally friendly labels on beer products
25/11/2019 - 10:28
SAB is one of the only businesses in the world, and the first in South Africa, to introduce environmentally friendly Core Linerless Solutions® labels for its product packaging.
Woolworths boosts Earth Friendly range and launches plastic alternative products
12/11/2019 - 14:01
More than ten years ago, Woolworths pioneered its own label of eco-friendly products in South Africa with the launch of its Earth Friendly range of household cleaning products.
Sustainable packaging set to become battleground for premium alcohol producers
23/10/2019 - 11:10
As ethical credentials become increasingly prominent markers of quality, sustainable packaging is likely to become a battleground for premium alcohol beverage brands, according to analytics company GlobalData.
Pioneer shareholders give nod to PepsiCo deal
16/10/2019 - 08:25
Shareholders of Pioneer Foods, the owner of brands such as Sasko bread and Ceres juices, have voted almost unanimously in favour of delisting the company, after a $1.7bn bid by PepsiCo.