Piedras Negras to double capacity
Ten million hectolitre add priced at $900mln-$1.1bln
Constellation Brands is putting its production platform in order with plans to double capacity at its brewery in Mexico.
A subsidiary, CIH International, has contracted with Ziemann International for a 10 million hectolitre expansion of capacity at Piedras Negras. The brewery is located in the state of Coahuila, about 15 kilometres distant from the United States border. While relatively isolated in arid countryside, the brewery does have good rail and road links into the US.
Ziemann managing director Karl Butzmann commented, “We are very delighted that Constelation Brands, as a new customer, has entrusted us with this very significant project.”
Ziemann also constructed the original 10 million hectolitre brewery, which was then owned by Grupo Modelo and began brewing as recently as March 2010. The anticipation from the outset was that capacity would one day be doubled, so as much as one can say that a 10mhl plant was ‘modular’ that was certainly the case in this instance.
Ownership of the brewery changed in the aftermath of Anheuser-Busch InBev’s acquisition of the remaining shares in Modelo. The US Department of Justice objected to the original agreement, which gave Constellation control of Modelo’s brands, but not its production facilities. The impasse was resolved with Constellation acquiring the Piedras Negras brewery and perpetual rights to the Corona and Modelo brand portfolio in the US for an additional $2.9 billion.
The original brewery came in at a cost of around $600 million. Inflation has taken its toll; in its latest financial results for YE 2013, Constellation Brands estimated the cost of the brewery expansion at between $900 million and $1.1 billion.
Brewers’ Guardian reported on the opening of Piedras Negras in 2010 – take an inside look at this state-of-the-art brewing complex.