After relocation to Veracruz, AMLO celebrated that the Constellation Brands brewery will generate two thousand jobs in the region

President Andrés Manuel López Obrador announced on Friday that the plant of the Constellation Brands brewery will finally be installed in the municipality of Veracruz, where he will invest $1.3 billion.

The president explained that this plant will have state-of-the-art technology and will be inaugurated in 2024, creating around two thousand direct jobs and 10,000 indirect jobs.

He added that Constellation Brands already has all environmental permits and is committed to taking care of aquifers and will not affect the supply of the area.

The facilities will be located in the Old Hacienda de Santa Fe in the municipality of Veracruz, very close to the port.

The initial project of this international brewery was to settle in Mexicali, Baja California, however, a popular consultation promoted by the federal government led to the cancellation of works in the border area because residents considered that the plant would aggravate water supply problems in the region.

The investment that Constellation Brands planned for the plant in Mexicali, which began in 2016, was 1.4 billion dollars and when the government suspended the operation, the company had already allocated 900 million dollars for its construction, with an advance of 70%.

For this reason, the chief executive welcomed the fact that the investment has finally been maintained in Mexico and assured that approximately 70% of the freshwater is found in southeastern Mexico, making it a good business opportunity for foreign investors.

This brewing group, which owns beer brands such as Corona or Modelo in the United States, will invest in Mexico to increase its production capacity.

The federal president said that this Friday he will meet in the port of Veracruz with American businessmen and Ambassador Ken Salaza r.

The governor of Veracruz, Cuitláhuac García thanked the President of the Republic and said that thanks to the work of federal forces the state has managed to recover levels of security that allow attracting private capital and thus promoting economic development in the region.

Marcelo Ebrard, Secretary of Foreign Affairs (SRE) said Thursday that this investment is a window of opportunity for southeastern Mexico as the export flow of Constellation Brands from Veracruz and Coatzacoalcos will be oriented to the eastern United States.

After the foreign company was forced to suspend the works it had already started in Baja California in 2020 following the citizen consultation promoted by the government of López Obrador, the foreign minister said that the managers of Constellation Brands were pleased to be part of the Veracruz community and the investment made in this new plant.

The Executive initially announced that it would submit the project to a feasibility study due to water scarcity in the area and the protests of several civil groups.

After the cancellation, the company negotiated with Mexican government officials to seek ways to recover the costs already capitalized and the additional expenses incurred, although in recent months it acknowledged that “there was no guarantee of recoveries.”

Until the last report in 2021, the company has seen a deterioration of $666 million due to the failed project in Mexicali and now with this new investment in Veracruz lands it expects to boost its production by 30 million hectolitres, according to the estimates of its managers.

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