Unilever Announces Investment in Mexico: A Major Commitment Amid Uncertainty

by | May 3, 2025 | FDI Latin America

In a significant show of confidence in Mexico’s economic potential, global consumer goods leader Unilever announced investment in Mexico totaling 30 billion pesos—approximately USD 1.528 billion—between 2025 and 2028. The announcement was made during a presidential press conference, marking one of the most substantial foreign direct investment (FDI) commitments in recent years. This move comes amid growing uncertainty related to trade relations with the United States, making it especially noteworthy in the current economic climate.

Strengthening Regional Production and Supply Chains

According to Willem Uijen, Unilever’s Director of Supply Chain and Operations, the investment will focus heavily on the northern state of Nuevo León, where the company plans to increase manufacturing capacity, implement new production lines, develop logistics infrastructure, and accelerate the digitalization of its operations.

“Unilever announces investment in Mexico with pride and optimism, focusing on building one of our most advanced facilities in Latin America,” Uijen stated. “This long-term investment demonstrates our commitment to Mexico and the Latin American market.”

Salinas Victoria: The Heart of New Development

The centerpiece of this ambitious investment is a new state-of-the-art factory in Salinas, Victoria, a municipality within the Monterrey metropolitan area. Unilever will allocate 8 billion pesos (around USD 408 million) to construct and outfit this facility, which is expected to create over 1,200 direct and indirect jobs.

“This facility will focus on producing beauty and personal care items, including some of our flagship brands like Dove, Rexona, and Sedal,” Uijen explained. “The plant will be able to meet domestic demand and the needs of neighboring Latin American countries.”

By establishing this advanced manufacturing hub in Salinas, Victoria, Unilever aims to leverage Mexico’s strategic location and favorable trade agreements to improve regional supply chains and optimize delivery timelines. Unilever announces investment in Mexico to expand its footprint and bolster its efficiency across the Americas.

Supporting the Mexico Plan in a Time of Uncertainty

Marcelo Ebrard, Mexico’s Secretary of Economy, welcomed the announcement as a timely endorsement of the government’s “Mexico Plan,” which seeks to attract foreign investment, develop regional economies, and reduce import dependency. Ebrard emphasized that Unilever’s decision is especially significant during economic and political uncertainty.

“The fact that Unilever announces investment in Mexico in this context shows that our country remains an attractive and strategic destination for global capital,” Ebrard said. He added that while global investors remain cautious due to potential trade tensions and tariff disputes, particularly with the United States, Mexico demonstrates resilience and competitiveness.

Navigating Trade Tensions and the USMCA Advantage

The backdrop to this announcement includes concerns over potential tariff changes and regulatory uncertainty tied to the evolving trade relationship between Mexico and the United States. However, Mexico has managed to preserve tariff exemptions under the United States-Mexico-Canada Agreement (USMCA), giving it a competitive edge in attracting foreign capital.

This trade stability is a key factor behind why Unilever announces investment in Mexico now, betting on Mexico’s continued access to the North American market. With favorable trade conditions and a skilled labor force, Unilever sees Mexico as a launchpad for broader American operations.

Record Foreign Investment Despite Challenges

According to the Ministry of Economy, Mexico closed 2024 with a new record in foreign direct investment, reaching USD 36.872 billion—a 2.3% increase compared to 2023. While this upward trend underscores growing investor confidence, analysts warn that uncertainty over future U.S. tariffs could dampen the outlook for 2025.

Nonetheless, investments like Unilever’s counterbalance these concerns, injecting capital and optimism into the economy. Unilever announces investment in Mexico at a time when bold, future-focused projects are exactly what the country needs to maintain momentum in the global marketplace.

Focus on Innovation and Sustainability

Beyond job creation and infrastructure, Unilever’s investment strongly emphasizes sustainability and digital transformation. The company plans to implement cutting-edge technologies at its new facilities to reduce energy consumption, improve water efficiency, and minimize environmental impact.

“This factory will not only be one of the most advanced in output but also in sustainability and automation,” Uijen said. “Unilever announces investment in Mexico to align with global environmental responsibility and digital innovation standards.”

This strategy is aligned with Unilever’s broader corporate objectives of achieving net-zero emissions and supporting inclusive economic development across its operating regions.

Unilever’s Long-Term Vision for Latin America

Mexico is one of Unilever’s top five markets globally, and the company’s decision to expand its presence underscores its confidence in the region’s long-term growth prospects. The planned investment will allow Unilever to better serve the rising demand in Latin America, where middle-class growth and consumer spending have shown strong trends in recent years.

Centralizing production for domestic and export markets aims to enhance operational flexibility and reduce reliance on long-distance supply chains. Unilever’s investment in Mexico is part of a broader strategic initiative to regionalize production and mitigate global disruptions.

Conclusion: A Vote of Confidence in Mexico’s Future

As Mexico faces complex economic challenges and an unpredictable global landscape, Unilever’s decision to announce investment in Mexico sends a strong signal of stability and opportunity. The scale and scope of the investment, combined with its focus on innovation, job creation, and regional growth, offer a template for how multinational corporations can play a constructive role in shaping the country’s future.

The next three years will be crucial in executing these plans, but if successful, the initiative could catalyze further investments and economic revitalization across the region. With its strategic location, trade access, and expanding infrastructure, Mexico remains a compelling destination for global companies willing to bet on its potential.