Nestle has completed a new US$220 million pet food factory in Silao, Guanajuato, Mexico.
The new plant – the company’s 15th in Mexico – is part of the company’s US$1.03 billion four-year investment program for Mexico.
The Purina factory will produce 130,000 tonnes of dry pet food annually. A second, future phase could add a new production line for wet food. Forty percent of the plant’s current output will be exported to Central America and the Caribbean.
The plant will employ 200 people directly and another 1,000 indirectly. Nestle Executive Vice President Laurent Freixe said the factory would generate MXN750 million (US$43.4 million) annually.
Nestle Mexico’s CEO, Marcelo Melchior, predicted the new facility will allow Nestle to overtake Mars Mexico, its main competitor.
Mexico is the fourth leading producer of animal feed after China, the US and Brazil.
While cat trends continue, the pandemic has added to overall slow-growth treatment of the cat food market.
Premiumization and humanization, as well as automation, fueled continued operation growth in spite of the COVID-19 pandemic.