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New Foreign Investments in Mexico for $7 billion

Karla Salinas | 05.02.2014

Las month during Enrique Peña Nieto's visit to Davos for the Annual Meeting of the World Economic Forum (WEF), he announced the arrival of that capital to Mexico from the companies Pepsico, Nestle and Cisco.

Las month during Enrique Peña Nieto's visit to Davos for the Annual Meeting of the World Economic Forum (WEF), he announced the arrival of that capital to Mexico from the companies Pepsico, Nestle and Cisco.

"It is very encouraging to see the enthusiasm that has been awoken by our country due to the structural changes that are happening" Peña Nieto said.

Pepsico said it would spend $5 billion in Mexico over five years to strengthen its food and beverage business, adding it planned to expand its production capacity by adding new manufacturing lines and expand delivery routes. The company expects to create 4,000 new jobs

Nestle plans to invest $1 billion in Mexico over five years, building  and infant nutrition factory in Jalisco and a pet- food factory in Guanajuato, expecting to create 700 direct jobs.

Network equipment maker Cisco Systems Inc said it would direct $1.35 billion into Mexican manufacturing operations and a support centre this year.

The Nestle and Pepsico investments come despite a new levy on soft drinks and junk foods included in Peña Nieto's tax overhaul

Peña Nieto has said that foreign direct investment (FDI) in Mexico totaled $28 billion during the first 9 months of 2013 and it was boosted last year by the Belgian-based beer giant Anheuser-Busch InBev's  acquisition of Grupo Modelo, which went through at the end of May and brought in about $13 billion.

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