Trade Resources Industry Views Modelo Will Pump in $325m in Two Plants in Mexico

Modelo Will Pump in $325m in Two Plants in Mexico

Grupo Modelo, an arm of beverage major Belgium-based Anheuser-Busch InBev, will pump in $325m in two plants in Yucatan, Mexico, including an aluminum beer-can unit.

The cans manufactured at the new unit will replace those being currently imported. With a capacity to produce around one billion cans annually, the unit would eventually export its products.

The company will also build a new brewery as part of the investment.

Work for construction of the new brewery will begin during the second half of the year.

The plant will become operational sometime in the first half of 2017.

With this, number of Modelo's breweries will increase to eight in Mexico.

The brewery unit will initially have an installed capacity of five million hectoliters a year, which will include Corona Extra beer and Montejo, native to Yucatan, the Wall Street Journal reported.

Grupo Modelo CEO Ricardo Tadeu said that political, social and labor stability, along with the availability of trained human capital have attracted the company to Yucatan.

Mexico, which has earned the distinction of being the world's sixth-largest beer producer, notched up exports to the tune of over $1.6bn last year.

Heineken, known for its rivalry with Modelo, had upped its ante in the Mexican brewery sector by announcing in March that it planned to set up its seventh brewery in the country in Coahuila.

Source: http://www.packaging-business-review.com/news/grupo-modelo-to-invest-325m-in-mexico-plants-010615-4589608
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Grupo Modelo to Invest $325m in Mexico Plants