Nestle plans to invest $1 billion in Mexico over five years, building two new factories and expanding a third in its sixth-biggest market, it said on Friday.

The world's No. 1 food maker said it would build an infant nutrition factory in Jalisco and a pet-food factory in Guanajuato, as well as expanding an existing cereal factory.

The investment would create 700 direct jobs, Nestle said.

The Mexican factories will produce goods for the wider region. For example, about 40 percent of the output from the baby food factory will be exported to Latin America and the Caribbean.