British consumer goods company Unilever will invest $30 billion pesos (US $1.5 billion) in Mexico over the next three years to increase production capacity.
Mexico’s Economy Minister Marcelo Ebrard made the announcement during President Claudia Sheinbaum’s Friday morning press conference.
“It’s important to recognize that these investment announcements are being made in an uncertain economic environment,” Ebrard said. “So beyond the [monetary] value, the fact that companies are investing in Mexico means they see a positive and promising future for Mexico.”
The Unilever investment includes an additional 8 billion pesos (US $407 million) to complete a new factory in the northern state of Nuevo León. The company set aside US $400 million in 2023 to start building the factory.
The factory will be located in the municipality of Salinas Victoria, Nuevo León, about 38 kilometers north of Monterrey. It will produce beauty products and personal care items by its brand leaders Dove, Rexona and Sedal, according to Willem Uijen, Unilever’s chief supply chain and operations officer.
Uijen said the London-based company maintains a long-term commitment to Mexico’s development and is intent on strengthening its operations in the country.
He also said the investment — which is expected to generate 1,200 new jobs — will increase production capacity, help launch product lines, fund logistics projects, finance the digitalization of operations and strengthen existing brands.
Unilever has operated in Mexico for more than 60 years and employs more than 7,000 people. It currently has one factory in Mexico City, two in México state and one more in the state of Morelos.
Friday’s announcement adds to a wave of foreign investment pledges that indicate confidence in Mexico’s economic outlook, as the Sheinbaum administration has been able to attract global companies amid rising trade tensions with the U.S.
In late March, Walmart pledged over US $6 billion in investments this year, while companies such as Amazon, Mercado Libre, Netflix and Spain’s Santander Bank have unveiled major investment plans in Mexico in recent weeks.
Unilever’s announcement further supports Sheinbaum’s “Plan México,” an initiative to increase investment in Mexico by domestic and foreign companies.
The plan, among other goals, aims to increase Mexico’s food and energy sovereignty, promote infrastructure development and home construction, and increase access to loans.
“We fully support the principles of Plan México,” Uijen said, adding that Unilever is eager to support the government’s project “to promote public welfare, encourage sustainable development and actively contribute to a more prosperous future for everyone.”
With reports from El Universal and Reuters
