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Modelo to build new 14 billion peso plant to produce 9 million bottles of beer per day

Mexico City, Mexico — Mexican beer producer Grupo Modelo plans to invest almost 14 billion peso ($754 million USD) to build a bottling and processing plant in the municipality of Apan, Hidalgo.

Construction is scheduled to begin later this year and will begin operations in the first quarter of 2019. Grupo Modelo, which is owned by the world’s largest brewer Anheuser-Busch InBev, produces and exports Corona, Modelo and Pacífico beers, among others.

The new plant will initially have an annual capacity of 12 million hectoliters that will eventually be increase to double.

The new development was officially announced by President Enrique Peña Nieto along with directors of Grupo Modelo on Monday. Grupo Modelo will invest 14 billion peso in the new plant, which is expected to be ready at the beginning of 2019 to increase its production capacity in Mexico. The new plant will see an 18 percent increase in productivity.

“This will be our eighth plant in the country. The new plant will have a capacity to produce 9 million bottles of beer per day, equivalent to more than 3 billion bottles per year and is designed to double that capacity to 6 billion bottles,” explained Mauricio Leyva, CEO of Grupo Modelo.

“It’s a historic announcement for Hidalgo and for Mexico, which is the Cervecería del Centro of Grupo Modelo. With an investment of 14 billion peso, it is the largest private investment in the history of the state so far,” said Omar Fayad, governor of Hidalgo.

The plant will be the second largest in the world by production volume, only below that of Zacatecas, which produces 24 million hectoliters of beer per year.

“Modelo has carried out productive investments in the country that exceed $3 billion USD. The new plant will benefit the Mexican economy for three reasons. First, because the Hidalgo families will have more opportunities to grow. Second, because a new industrial center is being promoted in the center of the country and third, because it helps consolidate the Mexican beer industry as one of the most important in the world,” said Enrique Peña Nieto.

In a second stage it is expected that the capacity of the new plant in Hidalgo will equal that installed in Zacatecas, although the estimated time for this to occur is not detailed.

In total, the project will generate 3,000 direct and 10,000 ndirect jobs.

“In the last two years, if we add the investment of the Cervecería Yucateca that opened 6 months ago and this new plant, we have announced investments for 22.5 million peso, which gives us an increase of 25 percent to the installed capacity of Grupo Modelo in Mexico,” Leyva added.