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To build a new factory in state of Yucatan

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Plant will have initial capacity of 4 million hectoliters

(Adds more comments, detail, background)

MEXICO CITY, June 11 (Reuters) - Beer maker Heineken

will invest $2.75 billion in different projects in Mexico, the

company's CEO in the country said on Wednesday.

Oriol Bonaclocha said during Mexican President Claudia

Sheinbaum's morning press conference that the investment will

include the construction of a new factory in the country's

southeast.

The new plant in the state of Yucatan will have an initial

production capacity of 4 million hectoliters and that amount is

expected to be doubled in the future depending on the company's

needs, Bonaclocha said.

"We do not plan to close any factories, this is an

expansion," he added.

In April, Grupo Modelo, the producer of Corona and other

Mexican beer brands, announced it would invest more than $3.6

billion in Mexico, despite concerns over water shortages in the

country.

The relationship between beer makers and other industries

like agriculture has been a longstanding issue in Mexico.

Almost three years ago, the construction of a Constellation

Brands ( STZ ) brewery in Mexicali was halted to protect local water

resources and moved to Veracruz in eastern Mexico.