Constellation Brands in Mexicali: Huge investment and too much confidentiality

Constellation Brands in Mexicali: Huge investment and too much confidentiality

Jun 15, 2017

RADIOFORMULA: Entrevista con Jorge Burgos en LA TRINCHERA

There’s a lot of confidentiality around the arrival and installation of Constellation Brands (CB), there’s too much classified information and it has provoked reactions at all levels in Mexicali society, from the rejection of the left wing militants to the analysis of academic instances, there have been many pros and cons against and for the installation of the company plant in Mexicali Valley soil.

This sort of companies try to establish their operations near the border with the USA because of the high production output volume, “we are talking about 1.4 billion dollars being invested in this project, said Jorge Burgos, Constellation Brands General Manager in Mexicali and he added that there are high production costs which will guarantee the quality of their output and a considerable financial and economic spread in Mexicali.

“This 1.4 billion are necessary to build the house of our operation and we will spread a relevant additional amount in local suppliers, airport traffic, hotels and restaurants and we have already hired three construction companies with the quality standards required by Constellation Brands, which will yield even more jobs, apart from the 700 job positions that will be created when the plant starts operating in two years”, said Burgos.

“Mexico has the capability to produce 60% of the input we require , we have an operation in Coahuila (Northeastern Mexico) where we generate a considerable economic spread, more than the 750 jobs we will create, an example is FEVISA (which is a glass container manufacture operation from Mexicali) which is already a CB supplier.

Considering the importance of a 1.4 billion do0llar investment, the Return Rate is an important figure which (unfortunately) is confidential as well as the production costs, many people think that declassifying this data would improve the acceptation of the company in Mexicali.

Why Mexicali? Because of location, said Burgos, “we can’t distribute our brands anywhere else tan the USA, so here there is a gas pipeline, electrical energy and highly qualified labor due to the academic level of institutions such as CETyS and UABC, said Burgos finally.

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