Conagra to upgrade Mexico manufacturing plant

MEXICO CITY — Conagra Brands Inc.’s Mexican arm plans a capacity expansion and upgrade of its production facility in Irapuato, situated in central Mexico northwest of Mexico City.

Under the 550 million peso ($31.9 million) investment, Conagra Brands Mexico said it will expand production lines, namely in packaging technologies, as well as optimize processes and add capacity to meet the rising market demand.

Conagra Brands Mexico called the Irapuato facility a “strategic pillar for the company,” given its location in the central region of Bajío and access to staple raw materials such as corn, potatoes and carrots. The plant makes products for brands including ACT II, Del Monte and Hunt’s and generates 94% of Conagra’s total sales volume in Mexico, the company noted.

“Mexico is a key market for Conagra Brands, and this investment reaffirms our confidence in the country and its talent,” said Alberto Cavia, chief executive officer of Conagra Brands Mexico, based in Mexico City. “The expansion of our plant in Irapuato not only strengthens our production capabilities but also reflects our long-term commitment to sustainable growth, innovation and development of the food sector in Mexico.”

The Irapuato manufacturing facility, located in the state of Guanajuato, was launched in 1962 and acquired by Conagra in 2000. In announcing the expansion on April 15, Conagra Brands Mexico said the project is part of a long-term effort to bolster Conagra’s operations in Mexico, where the company has more than 800 employees, as well as respond to new consumer trends.

The investment also represents a “significant contribution” to the Bajío region’s economic development, Conagra Brands Mexico added.

“We are very proud to continue promoting local economic development by strengthening our value chain in the country,” Cavia said. “Our goal is to continue to grow hand in hand with the communities in which we operate and continue to raise our standards of production and sustainability.”

Conagra Brands Mexico also highlighted the Irapuato plant’s environmental practices. The company said that, since 2015, the facility has treated more than 3.1 million cubic meters of wastewater and recycled or reused over 95% of its waste.