Heineken set to spend $510m to construct a new plant in Yucatan

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With a $510 million investment, Dutch brewer Heineken is set to construct a new beer production plant in Yucatan. In the municipality of Kanasn, a part of the Mérida metropolitan area, construction is expected to commence in 2024. Guillaume Duverdier, CEO of Heineken Mexico, said the factory will start operations in early 2026. The project is expected to generate 2,000 jobs.

According to Duverdier, the plant would initially provide Tecate, Sol, Dos Equis, Bohemia, Indio, and Carta Blanca, as well as other well-known local brands, to the Mexican domestic market with the ultimate objective of exporting products abroad.

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The CEO also said that in response to the solid growth potential of the Mexican market, bringing the company’s products closer to customers in southern-eastern Mexico.

Heineken currently has plants in Orizaba, Monterrey, Tecate, Navojoa, Guadalajara, Toluca, and Chihuahua within the country. This new facility, located in the southeast, will become the company’s eighth nationwide. Approximately 18,000 people are already employed by the company in Mexico.

After a thorough feasibility study, Yucatán was determined to be the best location. Factors such as local economies, security, connectivity, and abundant natural resources were considered across the country.

Concerns over Heineken’s project establishment in southern Mexico

Several brewers are concentrating on southern Mexico, including Heineken. Farmers in Baja California voiced concerns that the project could worsen water shortages in the drought-stricken region in 2020, forcing U.S.-based Constellation Brands to abandon a US $1.4 billion brewery that was already under construction in Mexicali and move the facility to Veracruz.

With an investment of USD 500 million, Heineken opened its most recent Mexican facility in Meoqui, Chihuahua, five years ago. According to the company, the plant operates under tight waste reduction policies and uses sustainable energy sources. It also adheres to solid sustainability principles to reduce water usage.

Heineken claims that the new Yucatán plant will adhere to these same environmental standards, aiming to consume just two litres of water for every litre of product, despite the relative availability of water in southern Mexico.