The food producer plans to invest $30 million in the construction of a distribution center in Alajuela and $20 million on technology and computer systems.
The multinational and owner in Costa Rica of Cinta Azul and Pipasa Corporation, plans to start construction of distribution center in San Rafael de Alajuela in 2018, after finishing with the design process, procedures and permits this year.
This year the food producer plans to invest $50 million in its operations in Nicaragua, $20 million in Honduras and between $10 and $15 million in Costa Rica.
In Nicaragua the company will invest in building two plants and strengthening its distribution center, in Costa Rica it will be investing in improving logistics systems and in Honduras resources will be used for renewal of equipment.
The company announced that the center will operate in a free trade area and will provide support to subsidiaries operating in other regions.
The food producer with a presence in the region will install a center for support and services called "Cargill Business Services (CBS), from where it will attend to approximately 50 of its own companies operating in North, Central and South America in areas such as information technology, human resources, finance, transportation, logistics and strategic sourcing.
Pollo Rey invested $20 million in moving its processing plants while Cargill is spending $25 million in a new distribution center.
The poultry division of Corporación Multiinversiones (Dipcmi), maker of Pollo Rey, moved its processing plant from San Carlos to its central headquarters in Coyol de Alajuela.
“Additionally, the company reported that for the second half of 2013 they will move another processing plant, also located in San Carlos, to a 1.000 m2 space in Barranca de Puntarenas”, reported Elfinancierocr.com.
The purchase of Pipasa in mid-2011 gave Cargill 55 to 60% of the chicken market in Costa Rica, and it is now announcing new investments to reinforce its hegemony.
Many of the other competitors are also advertising their own strategies for a trade war that goes beyond the borders of Costa Rica and includes the whole of the isthmus as a battle theater.
The multinational Cargill will invest these resources over a period of five years.
With a view to strengthening domestic production and further development of the national poultry and animal feed business, Cargill will inject capital into companies operating in the country.
For the Nicaraguan government, the investment by Cargill will help boost economic activity and also reflect the buoyant business climate prevailing in the country.