The 12,000-square-metre plant will be located in the Michatoya Industrial Park near Amitlán. © Google
Mexican dairy company Grupo Lala will invest $30 million in the construction of a new dairy factory in Guatemala.
The 12,000-square-metre site – south of Guatemala City – will feature a production line for pasteurised milk, UHT milk and ice cream. It will have a capacity of around 5,000 tons per month when the plant goes live in 2018 and support 3,500 direct and indirect jobs.
Grupo Lala said that sales in Guatemala have increased significantly in recent years, hence the timing of its latest investment. The announcement also coincided with a state visit to Guatemala from Mexican president Enrique Peña Nieto.
In a statement, Grupo Lala said: “The new factory is part of the company’s strategy to consolidate the group’s presence in the Central American region. The facilities will be located in the Michatoya Industrial Park [near Amatitlán], and will start operations during the first quarter of 2018.”
The Mexican dairy group will work with 1,500 Guatemalan suppliers to source enough milk for its products in the country, helping to ensure that it can set up a local manufacturing operation and make products of a consistently high quality for Guatemalan consumers.
The factory will also have a state-of-the-art wastewater treatment plant, which will allow it to process waste in accordance with local regulations.
In April, Lala warned against the effect of input and integration costs, despite reporting first-quarter sales growth.
Its latest investment in Guatemala – a market of over 16 million people – comes amid a concerted effort to grow its business outside of Mexico. Most notably, the company has established a US operation based in Dallas after paying nearly $250 million for the branded business of Laguna Dairy.
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