Beer company announces expansion

New York-based Constellation Brands announced Wednesday a $900 million investment to expand its production plant in Ciudad Obregón, in the neighbor state of Sonora.

Sonora Gov. Claudia Pavlovich said the investment is the second largest in state history after Ford Motor Co. built an assembly plant in Hermosillo a few years ago.

The expansion will create 450 new direct jobs in the existing facilities and 2,000 more during construction.

“There is no way a company risks almost $1 billion if owners don’t feel the investment is being done in the adequate place,” said Mexico’s Secretary of Economy Ildefonso Guajardo.

Constellation Brands Mexico President Daniel Baima said that thanks to the state’s support, the company spent last year $160 million to update the plant to increase production from 66 million gallons to 92.4 million gallons.

With the new investment, the company plans to increase production to 224.5 million gallons in the next four years.

The company is in plans to build and operate a beer-producing plant south of Mexicali that has raised concerns for environmental issues and high levels of water consumption.

Baja California officials denied the company expansion means the cancellation of the local beer plant.