Swiss-based food and drinks company Nestle SA says it will build two new factories in Mexico and invest $1 billion in the country over five years.

Nestle said Friday that it will build an infant nutrition factory in Ocotlan, in western Jalisco state, and a pet food facility in Silao in the central state of Guanajuato.

The company says it also will expand and upgrade a cereal factory in Lagos de Moreno, also located in Guanajuato state. CEO Paul Bulcke says the investment will lead directly to the creation of 700 jobs.

Bulcke says the decision reflects Nestle's "long-term vision in a market with high growth potential." The company says Mexico is its sixth-biggest global market.